Brief ⁽¹⁾

SB 41 would amend the Kansas Estate Tax Act to eliminate any outstanding inheritance tax liability as of July 1, 2008, for those estates for which no return has been filed by that date.

Background

The bill was requested for introduction and supported by the Department of Revenue. The change originally was proposed by the Estate Tax Advisory Committee of the Kansas Judicial Council.

Legislation enacted in 1998 repealed the inheritance tax act and replaced it with the Estate Tax Act, effective for all decedents dying on and after July 1, 1998. The statutory tax lien for inheritance tax liability pursuant to KSA 79-1569 currently expires ten years following the date of death. The Department said that continued existence of potential inheritance tax liability on July 1, 2008, could therefore create clouds on titles.

A fiscal note from the Budget Division said that the bill is not expected to have any fiscal impact on receipts in FY 2002. The Department indicated that if there were any negative fiscal impact from the bill, it would not be realized until FY 2009.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi