1.1 	A bill for an act
1.2 	relating to estate taxation; establishing a single exclusion amount for the 
1.3 	Minnesota taxable estate; establishing a single rate; eliminating the recapture 
1.4 	tax; making clarifying changes;amending Minnesota Statutes 2014, sections 
1.5 	289A.10, subdivision 1; 291.016, subdivision 1; 291.03, subdivision 1; 
1.6 	repealing Minnesota Statutes 2014, sections 289A.10, subdivision 1a; 289A.12, 
1.7 	subdivision 18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 291.016, 
1.8 	subdivision 3; 291.03, subdivisions 8, 9, 10, 11.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2014, section 289A.10, subdivision 1, is amended to read:
1.11 		Subdivision 1.Return required. In the case of a decedent who has an interest in 
1.12 	property with a situs in Minnesota, the personal representative must submit a Minnesota 
1.13 	estate tax return to the commissioner, on a form prescribed by the commissioner, if:
1.14 	(1) a federal estate tax return is required to be filed; or
1.15 	(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 
1.16 	section 2001(b) of the Internal Revenue Code, made within three years of the date of the 
1.17 	decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 
1.18 	for estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; 
1.19 	$1,800,000 for estates of decedents dying in 2017; and $2,000,000 $5,000,000 for estates 
1.20 	of decedents dying in 2018 2015 and thereafter.
1.21 	The return must contain a computation of the Minnesota estate tax due. The return 
1.22 	must be signed by the personal representative.

1.23 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
1.24 	dying after December 31, 2014.

2.1 	Sec. 2. Minnesota Statutes 2014, section 291.016, subdivision 1, is amended to read:
2.2 		Subdivision 1.General. For purposes of the tax under this chapter, the Minnesota 
2.3 	taxable estate equals the federal taxable estate as provided under section 2051 of the Internal 
2.4 	Revenue Code, without regard to whether the estate is subject to the federal estate tax:
2.5 	(1) increased by the value of any property in which the decedent had a qualifying 
2.6 	income interest for life and for which an election was made under section 291.03, 
2.7 	subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate tax 
2.8 	purposes; and
2.9 	(2) increased by the additions under subdivision 2; and
2.10 	(3) decreased by the subtraction under subdivision 3.

2.11 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
2.12 	dying after December 31, 2014.

2.13 	Sec. 3. Minnesota Statutes 2014, section 291.03, subdivision 1, is amended to read:
2.14 		Subdivision 1.Tax amount. The tax imposed must be computed by applying to the 
2.15 	Minnesota taxable estate the following schedule of rates and then the resulting amount 
2.16 	multiplied by a fraction, not greater than one, the numerator of which is the value of the 
2.17 	Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause 
2.18 	(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus 
2.19 	the value of gifts under section 291.016, subdivision 2, clause (3):
2.20 	(a) For estates of decedents dying in 2014:

2.21	Amount of Minnesota Taxable Estate
	Rate of Tax
	
2.22	Not over $1,200,000
	None
	
2.23	Over $1,200,000 but not over $1,400,000
	nine percent of the excess over $1,200,000
	
2.24
2.25	Over $1,400,000 but not over $3,600,000
	$18,000 plus ten percent of the excess over 
$1,400,000
	
2.26
2.27	Over $3,600,000 but not over $4,100,000
	$238,000 plus 10.4 percent of the excess 
over $3,600,000
	
2.28
2.29	Over $4,100,000 but not over $5,100,000
	$290,000 plus 11.2 percent of the excess 
over $4,100,000
	
2.30
2.31	Over $5,100,000 but not over $6,100,000
	$402,000 plus 12 percent of the excess over 
$5,100,000
	
2.32
2.33	Over $6,100,000 but not over $7,100,000
	$522,000 plus 12.8 percent of the excess 
over $6,100,000
	
2.34
2.35	Over $7,100,000 but not over $8,100,000
	$650,000 plus 13.6 percent of the excess 
over $7,100,000
	
2.36
2.37	Over $8,100,000 but not over $9,100,000
	$786,000 plus 14.4 percent of the excess 
over $8,100,000
	
3.1
3.2	Over $9,100,000 but not over $10,100,000
	$930,000 plus 15.2 percent of the excess 
over $9,100,000
	
3.3
3.4	Over $10,100,000
	$1,082,000 plus 16 percent of the excess 
over $10,100,000
	
3.5 	(b) For estates of decedents dying in 2015 and thereafter:

3.6	Amount of Minnesota Taxable Estate
	Rate of Tax
	
3.7	Not over $1,400,000$5,000,000
	None
	
3.8
3.9	Over $1,400,000 but not over $3,600,000
$5,000,000
	ten percent of the excess over $1,400,000
16 percent
	
3.10
3.11	Over $3,600,000 but not over $6,100,000
	$220,000 plus 12 percent of the excess over 
$3,600,000
	
3.12
3.13	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess 
over $6,100,000
	
3.14
3.15	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess 
over $7,100,000
	
3.16
3.17	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess 
over $8,100,000
	
3.18
3.19	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess 
over $9,100,000
	
3.20
3.21	Over $10,100,000 
	$1,080,000 plus 16 percent of the excess 
over $10,100,000
	
3.22 	(c) For estates of decedents dying in 2016:

3.23	Amount of Minnesota Taxable Estate
	Rate of Tax
	
3.24	Not over $1,600,000
	None
	
3.25	Over $1,600,000 but not over $2,600,000
	ten percent of the excess over $1,600,000
	
3.26
3.27	Over $2,600,000 but not over $6,100,000
	$100,000 plus 12 percent of the excess over 
$2,600,000
	
3.28
3.29	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess 
over $6,100,000
	
3.30
3.31	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess 
over $7,100,000
	
3.32
3.33	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess 
over $8,100,000
	
3.34
3.35	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess 
over $9,100,000
	
3.36
3.37	Over $10,100,000 
	$1,080,000 plus 16 percent of the excess 
over $10,100,000
	
3.38 	(d) For estates of decedents dying in 2017:

3.39	Amount of Minnesota Taxable Estate
	Rate of Tax
	
3.40	Not over $1,800,000
	None
	
3.41	Over $1,800,000 but not over $2,100,000
	ten percent of the excess over $1,800,000
	
3.42
3.43	Over $2,100,000 but not over $5,100,000
	$30,000 plus 12 percent of the excess over 
$2,100,000
	
3.44
3.45	Over $5,100,000 but not over $7,100,000
	$390,000 plus 12.8 percent of the excess 
over $5,100,000
	
4.1
4.2	Over $7,100,000 but not over $8,100,000
	$646,000 plus 13.6 percent of the excess 
over $7,100,000
	
4.3
4.4	Over $8,100,000 but not over $9,100,000
	$782,000 plus 14.4 percent of the excess 
over $8,100,000
	
4.5
4.6	Over $9,100,000 but not over $10,100,000
	$926,000 plus 15.2 percent of the excess 
over $9,100,000
	
4.7
4.8	Over $10,100,000 
	$1,078,000 plus 16 percent of the excess 
over $10,100,000
	
4.9 	(e) For estates of decedents dying in 2018 and thereafter:

4.10	Amount of Minnesota Taxable Estate
	Rate of Tax
	
4.11	Not over $2,000,000
	None
	
4.12	Over $2,000,000 but not over $2,600,000
	ten percent of the excess over $2,000,000
	
4.13
4.14	Over $2,600,000 but not over $7,100,000
	$60,000 plus 13 percent of the excess over 
$2,600,000
	
4.15
4.16	Over $7,100,000 but not over $8,100,000
	$645,000 plus 13.6 percent of the excess 
over $7,100,000
	
4.17
4.18	Over $8,100,000 but not over $9,100,000
	$781,000 plus 14.4 percent of the excess 
over $8,100,000
	
4.19
4.20	Over $9,100,000 but not over $10,100,000
	$925,000 plus 15.2 percent of the excess 
over $9,100,000
	
4.21
4.22	Over $10,100,000 
	$1,077,000 plus 16 percent of the excess 
over $10,100,000

4.23 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
4.24 	dying after December 31, 2014.

4.25 	Sec. 4.  REPEALER.
 4.26 	Minnesota Statutes 2014, sections 289A.10, subdivision 1a; 289A.12, subdivision 
4.27 	18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 291.016, subdivision 3; and 
4.28 	291.03, subdivisions 8, 9, 10, and 11, are repealed.

4.29 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
4.30 	dying after December 31, 2014.