SENATE BILL 441

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Manny M. Aragon

AN ACT

RELATING TO TAXATION; DECOUPLING THE ESTATE TAX ACT FROM FEDERAL ESTATE TAX CHANGES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-7-2 NMSA 1978 (being Laws 1973, Chapter 345, Section 2, as amended) is amended to read:

     "7-7-2. DEFINITIONS.--As used in the Estate Tax Act:

          A. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

          B. "certificate" means a certificate of no tax due or a receipt for payment of the tax due under the Estate Tax Act;

          C. "decedent" means a deceased individual;

          D. "federal credit" means the maximum amount of the credit for estate death taxes allowed for the decedent's net estate by Section 2011 [for the decedent's net estate] in effect on December 31, 2000 disregarding:

                (1) the reduction of the maximum credit in Section 2011(b)(2);

                (2) the period of limitations in Section 2011(c); and

                (3) the termination provision contained in Section 2011(f);

          E. "gross estate" means "gross estate" as defined and used in Section 2031 of the United States Internal Revenue Code of 1986, as amended or renumbered;

          F. "net estate" means "taxable estate" as defined in Section 2051 of the United States Internal Revenue Code of 1986 [as amended or renumbered] in effect as of the date of the decedent's death, except that the state death tax deduction contained in Section 2058 is to be disregarded;

          G. "nonresident" means a decedent who was domiciled outside New Mexico at his death;

          H. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other entity and, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof;

          I. "personal representative" means the executor or administrator of a decedent or, if no executor or administrator is appointed, qualified and acting, any person who has possession of any property;

          J. "property" means property included in the gross estate;

          K. "resident" means a decedent who was domiciled in New Mexico at his death;

          L. "Section 2011" means Section 2011 of the United States Internal Revenue Code of 1986 [as amended or renumbered] as of December 31, 2000; and

          M. "transfer" means "transfer" as defined and used in Section 2001 of the United States Internal Revenue Code of 1986, as amended or renumbered."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2004.

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