An Act To Eliminate Estate Taxes on Family-owned Businesses
Maine Legislature, Session 122, LD 0436
Committee: Taxation
Sponsors: BOWEN, HANLEY, COURTNEY, BIERMAN, BOWLES, RECTOR, TARDY, NASS
Amends: 36 MRSA §4062, 36 MRSA §4063, 36 MRSA §4064

Legislative Document 
No. 436 
H.P.321 
House of Representatives, January 27, 2005 
An Act To Eliminate Estate Taxes on Family-owned Businesses 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative BOWEN of Rockport. 
711~ 
1I1.7lldC~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative HANLEY of Paris, Senator COURTNEY of York and 
Representatives: BIERMAN of Sorrento, BOWLES of Sanford, McCORMICK of West 
Gardiner, RECTOR of Thomaston, TARDY of Newport, Senator: NASS of York. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §4062, sub-§l-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 and before January 1, 2005, "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 
adjusted 
taxable estate is to be determined using the applicable 
section of the Code as of the date of the decedent's death, 
except that the state death tax deduction contained 
Code, Section 2058 is to be disregarded. 
The unified 
is to be determined under the Code, 
Section 2010 
December 31, 2000; aRa 
Sec. 2. 36 MRSA §4062, sub-§l-A, ~A-l is enact.e(; 
~'r" 
"-"d: 
in the 
credit 
as of 
A-I. 
For the estates of decedents dyi.nq on (:u:: 
aft-~L{_ January 
1, 2005, "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 
201l( f). 
The adjusted taxable estate is to be determined 
using the applicable section of the Code as of the date of 
the 
decedent's 
death, 
except that 
the 
state 
.Q~ath tax 
deduction contained in the Code, 
Section 2058 __ 1s to be 
disregarded, 
The unified credit is to be determined under 
the Code, Section 2010 as of December 31, 2003; and 
Sec. 3. 36 MRSA §4063, sub-§2, as amended by PL 2003, c. 673, 
Pt. D, §3, is further amended to read: 
2. 
Values. 
All 
property 
values 
under 
subsection 
1, 
paragraphs A and B are as finally determined for federal estate 
tax purposes, except that for estates of decedents dying after 
December 31, 2002 and before January 1, 2005 that do not incur a 
federal estate tax, 
all property values 
under 
subsection 1, 
paragraphs A and B are as finally determined by the assessor in 
accordance with the Code as if the estate had incurred a federal 
estate tax. 
Sec. 4. 36 MRSA §4064. first~, as amended by PL 2003, c. 673, 
Pt. D, §4, is further amended to read: 
A tax is imposed upon the transfer of real property and 
tangible personal property situated in this State and held by an 
individual who dies prior to January 1, 2002 or after December 
31, 2002 and who at the time of death was not a resident of this 
State. 
When 
real 
or 
tangible 
personal 
property 
has 
been 
transferred into a trust, the tax imposed by this section applies 
as if the trust did not exist and the property was personally 
owned by the decedent. 
Maine property is subject to the tax 
imposed by this section to the extent that such property is 
included in the decedent I s federal gross estate. 
The amount of 
this tax is a sum equal to that proportion of the federal credit 
that the value of Maine real and tangible personal property taxed 
in this State that qualifies for the credit bears to the value of 
the decedent I s federal gross estate. All property values under 
this section are as finally determined for federal estate tax 
purposes, 
except 
that 
for 
estates 
of 
decedents 
dying 
after 
December 31, 2002 and before January 1, 2005 that do not incur a 
federal estate tax, all property values are as finally determined 
by the assessor in accordance with the Code as if the estate had 
incurred a federal estate tax. 
The share of the federal credit 
used to determine the amount of a nonresident individual's estate 
tax under this section is computed without regard to whether the 
specific real or tangible personal property located in the State 
is marital deduction property. 
SUMMARY 
This bill amends Maine's estate tax to conform to federal 
provisions beginning in 2005.