Phases out existing inheritance taxes on large estates, and all taxes on intra-family property transfers
Result of “yes” vote: “Yes” vote phases out existing inheritance/estate taxes on large estates, death-related property transfers, and taxes on certain intra-family property transfers; reduces state revenue.
Result of “no” vote: “No” vote retains existing estate/inheritance taxes on estates with value of at least $1 million; tax on all income-producing intra-family property transfers.
Summary: Current state law imposes one-time tax on estate of person dying on/after January 1, 2012, if estate’s gross value—determined by federal law as of December 31, 2010—is at least $1,000,000. Current law taxes income-producing property sales, regardless of parties’ relationship. Measure incrementally phases out estate/inheritance tax, tax on property transfers between “family members” (defined), and tax on property transferred in connection with person’s death; prohibits imposition of such taxes on property of person dying on/after January 1, 2016. Allows state to cooperate with other states and federal government in administering those entities’ estate/inheritance taxes; permits fees on probate and other transactions that may occur following person’s death. Measure reduces state revenues; provides no replacement. Other provisions.