§ 44-22-1 - Tax on net estate of decedents – Additional tax on postponed enjoyment – Deductions – Marital deduction.
SECTION 44-22-1
§ 44-22-1 Tax on net estate of decedents– Additional tax on postponed enjoyment – Deductions – Maritaldeduction. – (a) A tax is imposed upon the transfer of the net estate of every resident ornonresident decedent as a tax upon the right to transfer. The tax is imposed atthe rate of two percent (2%) upon all amounts not in excess of twenty-fivethousand dollars ($25,000); at the rate of three percent (3%) upon all amountsin excess of twenty-five thousand dollars ($25,000) and not exceeding fiftythousand dollars ($50,000); at the rate of four percent (4%) upon all amountsin excess of fifty thousand dollars ($50,000) and not exceeding one hundredthousand dollars ($100,000); at the rate of five percent (5%) upon all amountsin excess of one hundred thousand dollars ($100,000) and not exceeding twohundred fifty thousand dollars ($250,000); at the rate of six percent (6%) uponall amounts in excess of two hundred fifty thousand dollars ($250,000) and notexceeding five hundred thousand dollars ($500,000); at the rate of sevenpercent (7%) upon all amounts in excess of five hundred thousand dollars($500,000) and not exceeding seven hundred fifty thousand dollars ($750,000);at the rate of eight percent (8%) upon all amounts in excess of seven hundredfifty thousand dollars ($750,000) and not exceeding one million dollars($1,000,000); at the rate of nine percent (9%) upon all amounts in excess ofone million dollars ($1,000,000). An additional tax is imposed at the rate oftwo percent (2%) upon all or any part of each estate devised, bequeathed, orconveyed in such manner that it becomes necessary to postpone the assessment oftaxes imposed by this chapter until the person entitled to the estate comesinto beneficial enjoyment or possession of the estate; and provided, further,that an additional tax is not assessed and collected, as provided in§§ 44-23-9 – 44-23-12, in case a settlement of taxes is effectedunder the provisions of § 44-23-25.
(b) In computing the value of the net estate in subsection(a) of this section, there is deducted from the estate and exempted from thetax twenty-five thousand dollars ($25,000).
(c) In computing the value of the net estate in subsection(a) of this section, there is deducted from the estate and exempted from thetax all property or interests transferred to any corporation, association, orinstitution located in Rhode Island which is exempt from taxation by charter orunder the laws of this state; or to any corporation, association, orinstitution located outside of this state, which if located within this state,would be exempt from taxation; provided, that the state of domicile of thecorporation, association, or institution allows a reciprocal exemption to anysimilar Rhode Island corporation, association, or institution; or to any personin trust for the same or for use by the same for charitable purposes; or to anycity or town in this state for public purposes.
(d) In computing the value of the net estate in subsection(a) of this section, there is deducted from the estate and exempted from thetax United States civil and federal military service annuity payments.
(e) In computing the value of the net estate in subsection(a) of this section, there is deducted from the estate and exempted from theestate tax a marital deduction, as defined in 26 U.S.C. § 2056, in theamount of one hundred seventy-five thousand dollars ($175,000), from propertyor beneficial interests which pass or have passed from the decedent to thesurviving spouse, but only to the extent that the interests are included indetermining the value of the gross estate.
(f) In computing the value of the net estate in subsection(a) of this section, there is deducted from the estate and exempted from theestate tax, an orphan's deduction, provided, that: (i) the decedent does nothave a surviving spouse, and (ii) the decedent is survived by a minor childwho, immediately after the death of the decedent, has no known parent, anamount equal to the value of any interest in property which passes or haspassed from the decedent to the child, but only to the extent that the interestis included in determining the value of the gross estate. The aggregate amountof the deductions allowed under this section (computed without regard to thissubsection) with respect to interests in property passing to any minor childshall not exceed an amount equal to five thousand dollars ($5,000) multipliedby the excess of twenty-one (21) over the age (in years) which the child hasattained on the date of the decedent's death.
(2) For purposes of this subsection, any term used in thesubsection has the same meaning as when used in a comparable context in 26U.S.C. § 2057 unless a different meaning is clearly required.
(g) Notwithstanding any other provisions of this chapter, thetotal estate tax payment on account of the estate of a decedent whose deathoccurs on or after January 1, 1986, is that percentage of the estate tax whichwould be payable under this chapter determined in accordance with the followingschedule:
(1) Death prior to January 1, 1987. Ninety percent(90%) in the case of decedents whose deaths occur on or after January 1, 1986,and prior to January 1, 1987;
(2) Death prior to January 1, 1988. Eighty percent(80%) in the case of decedents whose deaths occur on or after January 1, 1987,and prior to January 1, 1988;
(3) Death prior to January 1, 1989. Sixty percent(60%) in the case of decedents whose deaths occur on or after January 1, 1988,and prior to January 1, 1989;
(4) Death prior to January 1, 1990. Forty percent(40%) in the case of decedents whose deaths occur on or after January 1, 1989,and prior to January 1, 1990;
(5) Death prior to June 1, 1990. Twenty percent (20%)in the case of decedents whose deaths occur on or after January 1, 1990, andprior to June 1, 1990;
(6) Death prior to January 1, 1992. Forty percent(40%) in the case of decedents whose deaths occur on or after June 1, 1990, andprior to January 1, 1992.
(7) Death on or after January 1, 1992. The estate taxpayable on or account of the estate of a decedent whose death occurs on orafter January 1, 1992, is determined in accordance with § 44-22-1.1.
(h) The estate tax payable under this section shall in noevent be less than the estate tax due under § 44-22-1.1, computed withoutregard to the date of death.