An Act To Conform Maine Estate Tax Law with Federal Estate Tax Laws
Maine Legislature, Session 122, LD 0112
Committee: Taxation
Sponsors: CURLEY, PERRY, BOWEN, BROWNE, CLOUGH, OTT, DAVIS, MILLS
Amends: 36 MRSA §4062, 36 MRSA §4068

Legislative Document 
No. 112 
H.P.88 
House of Representatives, January 11,2005 
An Act To Conform Maine Estate Tax Law with Federal Estate Tax 
Laws 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CURLEY of Scarborough. 
Cosponsored by Senator PERRY of Penobscot and 
17/~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BOWEN of Rockport, BROWNE of Vassalboro, CLOUGH of Scarborough, 
OTT of York, Senators: DAVIS of Piscataquis, MILLS of Somerset. 
Printed 00 recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §4062, sub-§I-A. ,A. as amended by. PL 2003, c. 
673, Pt. D, §1, is further amended to read: 
A. 
For the estates of decedents dying after December 31, 
2002, "federal credit" means the maximum credit for state 
death taxes determined under the Code, Section 2011 as of 
December 31, 2002 exclusive of the reduction of the maximum 
credit contained in the Code, Section 2011(b)(2); the period 
of limitations under the Code, 
Section 2011(c); 
and the 
termination 
provision 
contained 
in 
the 
Code, 
Section 
2011(f). 
The 
ag~Qs~eg federal 
taxable estate is to 
be 
determined using the applicable Code as of the date of the 
decedent's death, except that ~Re-£~~~~-~~-~~-gegQe~ieH 
eeH~aiBeg-~~-&Re-~~-~~~~-~Q~~--~-~e-~-g~s~e~a~gegT 
±Re--~~~~~-~~~-~~-~e--ge-~~~~-~--~£~--~egeT 
~ee~ieB-6Q1Q-as-e~-~eeemge~-~lT-6QQQ~-aBg~ 
(I) 
The state death tax deduction contained in the 
Code, Section 2058 is to be disregarded: 
(2) 
In the case of any property eligible to be treated 
as gualified terminable interest property under 
the 
Code, 
Section 2056(b)(7) 
and for 
which 
no 
election 
allowable under the Code, Section 2056(b)(7) is made 
with respect to the federal estate tax, the personal 
representative may elect. on a timely filed return in 
the form prescribed by the State Tax Assessor, to treat 
the property as gualified terminable interest property 
for purposes of the tax imposed by this chapter, and if 
such an election is made, 
the federal taxable estate 
must be decreased by an amount egual to the value of 
the property as finally determined by the assessor in 
accordance with the Code and, in the case of estates 
that do not 
incur 
a 
federal estate tax, 
as if the 
estate had incurred a federal estate tax, subject tQ 
the following: 
( a} 
For 
deced~nts dying in 20Q4, the amount may 
not exceed $650,000: 
{b) 
For 
decedent~ dying in 2005, the amQunt may 
not exc~ed ~550,000; 
{c} 
For decedents dying in 2006, 
20Q7 or 2008, 
the amount may not exceed $l,OQO,OOO; and 
{d} 
For decedents dying in 2009, the amount may 
not exceed $2,500,000; 
(3) 
In the case of any property that benefits the 
decedent and with respect to which an election was made 
pursuant 
to 
subparagraph 
(2) 
in 
the 
estate 
of 
a 
deceased spouse of the decedent, the federal taxable 
estate must be increased by an amount egual to the 
value of the property as finally determined by the 
assessor in accordance with the Code as if the property 
were includable in the decedent's federal gross estate 
and, in the case of estates that do not incur a federal 
estate tax, as if the estate had incurred a federal 
estate tax; and 
(4) 
The unified credit is to be determined under the 
Code, Section 2010 as of December 31, ZOOO; and 
Sec. 2. 36 MRSA §4068. sub-§2. as amended by PL Z003, c. 673, 
Pt. D, §6 and affected by §9, is further amended to read: 
2. 
Tax liability. 
In all cases where there is a Maine 
estate tax liability, the personal representative shall pay the 
tax imposed by this chapter and file a return within 9 months 
after the decedent's death. 
The return must be in the 
form 
prescribed by the State Tax Assessor and it must be accompanied 
by a copy of the federal estate tax return, if any, and other 
supporting documentation that the assessor may require, including 
documentation related to an election made pursuant to section 
4062, subsection 1, paragraph A, subparagraph (2). 
Sec. 3. 36 MRSA ~4068. sub-§3. as amended by PL Z003, c. 673, 
Pt. 
D, 
§6 
and affected by §9, 
is repealed and the following 
enacted in its place: 
3. 
No tax liability. 
In all cases where there is no Maine 
estate tax liability: 
A. 
If 
the 
personal 
representative 
makes 
no 
election 
pursuant 
to 
section 
4062, 
subsection 
L 
paragraph 
A, 
subparagraph 
(2), 
the 
personal 
representative, 
surviving 
joint tenant of real estate or any other person whose real 
estate might be subject to a lien for taxes pursuant to this 
chapter may at any time file with the assessor in the form 
prescribed by the assessor a statement of the value of the 
federal gross estate; and 
B. 
If 
the 
personal 
representative 
makes 
an 
election 
pursuant 
to 
section 
406Z, 
subsection 
1, 
paragraph 
A, 
~s~u~b~p~a~r~a~g~r~a~p~h~~(~2~)u'L-the~rsonal representative shall 
mak~ 
that election on a timely filed return. 
The return must be 
in the 
form prescribed by the assessor 
and it must be 
accompanied by a copy of the federal estate tax return, if 
any, 
and other supporting documentation that the assessor 
may require, including documentation related to an election 
made pursuant to section 4062, subsection 1, paragraph A, 
subparagraph (2). 
SUMMARY 
This bill conforms Maine estate tax laws with federal estate 
tax laws.