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An Act To Change the Exemption Amount under the Estate Tax
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §4102, sub-§5, as amended by PL 2015, c. 267, Pt. I, §1, is further amended to read:
 
5. Maine exclusion amount.   For estates of decedents dying on or after January 1, 2013, but before January 1, 2016, "Maine exclusion amount" means $2,000,000. For estates of decedents dying on or after January 1, 2016, but before January 1, 2018, "Maine exclusion amount" means the basic exclusion amount determined for the calendar year in accordance with the Code, Section 2010(c)(3). For estates of decedents dying on or after January 1, 2018, "Maine exclusion amount" means $1,000,000.
Sec. 2. 36 MRSA §4103, sub-§1, as amended by PL 2015, c. 267, Pt. I, §2, is further amended to read:
 
1. Imposition of tax for decedents dying before 2018.   A tax is imposed on the transfer of the Maine taxable estate of every person who, at the time of death, was a resident of this State. The amount of tax for the estates of decedents who die before January 1, 2018 is determined as provided in this sectionsubsection.
 
A. If the Maine taxable estate is less than or equal to the Maine exclusion amount, the tax is $0.
 
B. If the Maine taxable estate is more than the Maine exclusion amount but no more than the Maine exclusion amount plus $3,000,000, the tax is 8% of the excess over the Maine exclusion amount.
 
C. If the Maine taxable estate is more than the Maine exclusion amount plus $3,000,000 but no more than the Maine exclusion amount plus $6,000,000, the tax is $240,000 plus 10% of the excess over the Maine exclusion amount plus $3,000,000.
 
D. If the Maine taxable estate is more than the Maine exclusion amount plus $6,000,000, the tax is $540,000 plus 12% of the excess over the Maine exclusion amount plus $6,000,000.
 
The amount of this tax is multiplied by a fraction, the numerator of which is the value of that portion of the decedent's adjusted federal gross estate that consists of real and tangible personal property located in this State plus the value of all intangible personal property and the denominator of which is the value of the decedent's adjusted federal gross estate.
Sec. 3.  36 MRSA §4103, sub-§1-A  is enacted to read:
 
1-A.  Imposition of tax for decedents dying after 2017.     A tax is imposed on the transfer of the Maine taxable estate of every person who, at the time of death, was a resident of this State. The amount of tax for the estates of decedents who die on or after January 1, 2018 is determined as provided in this subsection.
 
A.  If the Maine taxable estate is less than or equal to the Maine exclusion amount, the tax is $0.
 
B.  If the Maine taxable estate is more than the Maine exclusion amount but no more than the Maine exclusion amount plus $5,000,000, the tax is 8% of the excess over the Maine exclusion amount.
 
C.  If the Maine taxable estate is more than the Maine exclusion amount plus $5,000,000 but no more than the Maine exclusion amount plus $8,000,000, the tax is $240,000 plus 10% of the excess over the Maine exclusion amount plus $5,000,000.
 
D.  If the Maine taxable estate is more than the Maine exclusion amount plus $8,000,000, the tax is $540,000 plus 12% of the excess over the Maine exclusion amount plus $8,000,000.
 
The amount of this tax is multiplied by a fraction, the numerator of which is the value of that portion of the decedent's adjusted federal gross estate that consists of real and tangible personal property located in this State plus the value of all intangible personal property and the denominator of which is the value of the decedent's adjusted federal gross estate.
 
SUMMARY
Under Maine law, the amount of an estate exempt from Maine estate tax is defined as the same amount that is exempt under federal law, which is currently $5,000,000. Amounts over the exclusion amount are taxed at 8%, 10% and 12% based on the amount of the estate.
This bill specifies that the amount of a Maine estate that is exempt from Maine estate tax is $1,000,000 for estates of persons dying on or after January 1, 2018. The same tax rates as under the current law are maintained.