SENATE, No. 2079
STATE OF NEW JERSEY
INTRODUCED MAY 15, 1997
By Senator DiFRANCESCO
An Act exempting siblings of the decedent from transfer inheritance taxes, amending R.S.54:34-2.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:34-2 is amended to read as follows:
54:34-2. a. (1) The transfer of property to a husband or wife of a decedent shall be taxed at the following rates:
For transfers made through December 31, 1984:
On any amount in excess of $15,000, up to $50,000 ................. |
2% |
On any amount in excess of $50,000, up to $100,000 ............... |
3% |
On any amount in excess of $100,000, up to $150,000 ............. |
4% |
On any amount in excess of $150,000, up to $200,000 ............. |
5% |
On any amount in excess of $200,000, up to $300,000 ............. |
6% |
On any amount in excess of $300,000, up to $500,000 ............. |
7% |
On any amount in excess of $500,000, up to $700,000 ............. |
8% |
On any amount in excess of $700,000, up to $900,000 ............. |
9% |
On any amount in excess of $900,000, up to $1,100,000 .......... |
10% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
11% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
12% |
On any amount in excess of $1,700,000, up to $2,200,000 ........ |
13% |
On any amount in excess of $2,200,000, up to $2,700,000 ........ |
14% |
On any amount in excess of $2,700,000, up to $3,200,000 ....... |
15% |
On any amount in excess of $3,200,000 ................................... |
16% |
For transfers made on or after January 1, 1985 there shall be no tax imposed under this paragraph.
(2) The transfer of property to a father, mother, grandparent, child or children of a decedent, or to any child or children adopted by the decedent in conformity with the laws of this State, or of any of the United States or of a foreign country, or the issue of any child or legally adopted child of a decedent, shall be taxed at the following rates:
For transfers through June 30, 1985:
On any amount in excess of $15,000, up to $50,000 ................. |
2% |
On any amount in excess of $50,000, up to $100,000 ............... |
3% |
On any amount in excess of $100,000, up to $150,000 ............. |
4% |
On any amount in excess of $150,000, up to $200,000 ............. |
5% |
On any amount in excess of $200,000, up to $300,000 ............. |
6% |
On any amount in excess of $300,000, up to $500,000 ............. |
7% |
On any amount in excess of $500,000, up to $700,000 ............. |
8% |
On any amount in excess of $700,000, up to $900,000 ............. |
9% |
On any amount in excess of $900,000, up to $1,100,000 .......... |
10% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
11% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
12% |
On any amount in excess of $1,700,000, up to $2,200,000 ........ |
13% |
On any amount in excess of $2,200,000, up to $2,700,000 ........ |
14% |
On any amount in excess of $2,700,000, up to $3,200,000 ....... |
15% |
On any amount in excess of $3,200,000 ................................... |
16% |
For transfers made from July 1, 1985 through June 30, 1986:
On any amount in excess of $50,000, up to $100,000 ............... |
3% |
On any amount in excess of $100,000, up to $150,000 ............. |
4% |
On any amount in excess of $150,000, up to $200,000 ............. |
5% |
On any amount in excess of $200,000, up to $300,000 ............. |
6% |
On any amount in excess of $300,000, up to $500,000 ............. |
7% |
On any amount in excess of $500,000, up to $700,000 ............. |
8% |
On any amount in excess of $700,000, up to $900,000 ............. |
9% |
On any amount in excess of $900,000, up to $1,100,000 .......... |
10% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
11% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
12% |
On any amount in excess of $1,700,000, up to $2,200,000 ........ |
13% |
On any amount in excess of $2,200,000, up to $2,700,000 ........ |
14% |
On any amount in excess of $2,700,000, up to $3,200,000 ....... |
15% |
On any amount in excess of $3,200,000 ................................... |
16% |
For transfers made from July 1, 1986 through June 30, 1987:
On any amount in excess of $150,000, up to $200,000 ............. |
5% |
On any amount in excess of $200,000, up to $300,000 ............. |
6% |
On any amount in excess of $300,000, up to $500,000 ............. |
7% |
On any amount in excess of $500,000, up to $700,000 ............. |
8% |
On any amount in excess of $700,000, up to $900,000 ............. |
9% |
On any amount in excess of $900,000, up to $1,100,000 .......... |
10% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
11% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
12% |
On any amount in excess of $1,700,000, up to $2,200,000 ........ |
13% |
On any amount in excess of $2,200,000, up to $2,700,000 ........ |
14% |
On any amount in excess of $2,700,000, up to $3,200,000 ....... |
15% |
On any amount in excess of $3,200,000 ................................... |
16% |
For transfers made from July 1, 1987 through June 30, 1988:
On any amount in excess of $250,000, up to $300,000 ............. |
6% |
On any amount in excess of $300,000, up to $500,000 ............. |
7% |
On any amount in excess of $500,000, up to $700,000 ............. |
8% |
On any amount in excess of $700,000, up to $900,000 ............. |
9% |
On any amount in excess of $900,000, up to $1,100,000 .......... |
10% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
11% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
12% |
On any amount in excess of $1,700,000, up to $2,200,000 ........ |
13% |
On any amount in excess of $2,200,000, up to $2,700,000 ........ |
14% |
On any amount in excess of $2,700,000, up to $3,200,000 ....... |
15% |
On any amount in excess of $3,200,000 ................................... |
16% |
For transfers made on or after July 1, 1988 there shall be no tax imposed under this subsection.
b. (Deleted by amendment.)
c. The transfer of property to a [brother or sister of a decedent,] wife or widow of a son of a decedent [,] or a husband or widower of a daughter of a decedent shall be taxed at the following rates:
(1) For transfers through June 30, 1988:
On any amount up to $1,100,000 ............................................. |
11% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
13% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
14% |
On any amount in excess of $1,700,000 ................................... |
16% |
(2) For transfers made on or after July 1, 1988:
On any amount in excess of $25,000 up to $1,100,000 ............. |
11% |
On any amount in excess of $1,100,000, up to $1,400,000 ........ |
13% |
On any amount in excess of $1,400,000, up to $1,700,000 ........ |
14% |
On any amount in excess of $1,700,000 ................................... |
16% |
d. The transfer of property to every other transferee, distributee or beneficiary not hereinbefore classified shall be taxed at the following rates:
On any amount up to $700,000 ................................................ |
15% |
On any amount in excess of $700,000 ................................... |
16% |
For every purpose of this subtitle all persons, including the decedent, shall be deemed to have been born in lawful wedlock and this provision shall apply to the estate of every decedent whether said decedent died before March 25, 1935, or shall die thereafter, but it shall not entitle any person to a refund of any tax paid before the aforementioned date.
(cf: P.L.1985, c.57, s.1)
2. This act shall take effect immediately and apply to transfers made on or after the first day of the third month following enactment.
STATEMENT
This bill amends the New Jersey transfer inheritance tax to exempt decedent transfers to brothers and sisters of the decedent from taxation.
The transfer inheritance tax is imposed on the recipients of property inherited or transferred by will. The tax was extensively amended in 1985 so that over the next few years transfers to the spouse, children and grandchildren, and parents of a decedent were exempted from taxation. Transfers to close relatives of the decedent, including the decedent's brothers and sisters, were provided an exemption on the first $25,000 transferred to each.
This bill adds the brothers and sisters of a decedent to the category of transferees who are exempt from tax.
Exempts siblings of the decedent from transfer inheritance taxes.