2013 -- S 0018

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LC00229

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES--ENFORCEMENT AND

COLLECTION

     Introduced By: Senators Felag, DiPalma, Cool Rumsey, Sosnowski, and Ottiano

     Date Introduced: January 16, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-23-5 of the General Laws in Chapter 44-23 entitled "Estate and

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Transfer Taxes - Enforcement and Collection" is hereby amended to read as follows:

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     44-23-5. Appraisal of estate. – (a) If any statement filed in accordance with the

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provisions of this chapter is considered to be an erroneous or incomplete statement of the

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property, real, tangible personal, intangible personal, or of any part of the property, of the

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decedent, the tax administrator shall give notice to the executor, administrator, heir-at-law,

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beneficiary, or trustee filing the statement, to appear before the tax administrator for the purpose

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of examination of and concerning the statement, and concerning all matters appertaining to the

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estate and the value of the estate of the decedent; and if the executor, administrator, heir-at-law,

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beneficiary, or trustee fails to appear after due notice, or if after appearance and examination of

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the executor, administrator, heir-at-law, beneficiary, or trustee the tax administrator still considers

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the statement to be an erroneous or incomplete statement, or if the executor, administrator, heir-

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at-law, beneficiary, or trustee refuses or neglects to answer the questions propounded in reference

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to the statement, the tax administrator may appraise the estate. The tax administrator shall give

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notice by mail to the executor, administrator, heir-at-law, beneficiary, or trustee and to all persons

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known to have a claim or interest in the estate or property to be appraised, of the time and place

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of the appraisal, and the tax administrator or his or her authorized agent shall at that time and

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place appraise the estate or property at its full and fair cash value as prescribed in this section; and

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for that purpose the tax administrator is authorized to issue subpoenas and to compel the

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attendance of witnesses and to take the evidence of the witnesses under oath if necessary,

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concerning the estate or property and the value of the estate, and the witnesses shall receive the

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same fees as those now paid to witnesses subpoenaed to attend the superior court. From the

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appraisal and other proof relating to the estate or property, the tax administrator determines the

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full and fair cash value of the estate or property upon which all taxes imposed by chapter 22 of

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this title are computed and the amount of taxes to which it is liable. If no appraisal is made as

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provided in this section, the tax administrator may determine the value of the property upon

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which all the taxes are computed and the amount of taxes to which it is liable.

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     (b) Notwithstanding the provisions of subsection 44-23-5(a), all farmland, as such term is

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defined in section 44-27-2, included as part of an estate for purposes of this section and utilized

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by the executor, administrator, heir-at-law, beneficiary or trustee as farmland, shall be appraised

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at its use value according to applicable federal and state law and not at its full and fair cash value.

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     SECTION 2. This act shall take effect upon passage.

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LC00229

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES--ENFORCEMENT AND

COLLECTION

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     This act would provide that for estate tax purposes, farmland shall be appraised at its use

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value and not at its full and fair cash value.

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     This act would take effect upon passage.

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LC00229

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