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The inheritance tax is imposed on the heirs or legatees of a decedent for the privilege of receiving property from the deceased. Effective January 1, 2008, inheritance tax shall not apply to deaths that occur after June 30, 2004. See Acts 2008, No. 822.
For deaths that occurred before July 1, 2004—the following apply:
Heirs or legatees pay tax on the taxable value of their inheritance, legacy, and donation or gift in contemplation of death, at the following rates determined by their relationship to the deceased:
Acts 1997, No. 818 enacted R.S. 47:2403(E) to reduce the inheritance tax by 18 percent for deaths that occur after June 30, 1998; by 40 percent for deaths that occur after June 30, 2001; by 60 percent for deaths that occur after June 30, 2002; by 80 percent for deaths that occur after June 30, 2003; and for deaths that occur after June 30, 2004, the tax shall not apply.
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Charitable, religious, and educational organizations are exempt from the inheritance tax.
For deaths occurring before July 1, 2004, for which an inheritance tax return was not filed before January 1, 2008, an inheritance tax return and any taxes are due to the Secretary of Revenue by January 1, 2008.
Revised Statute 47:2436 requires that an estate transfer tax return be filed by or on behalf of the heirs or legatees in every case where estate transfer tax is due or where the value of the deceased's net estate is $60,000.00 or more.
The estate transfer tax is calculated by determining a ratio of assets included in the federal gross estate attributable to Louisiana to the total federal gross estate. This ratio is applied to the state death tax credit allowable under Internal Revenue Code Section 2011. The portion of the state death tax credit allowable to Louisiana that exceeds the inheritance tax due is the state estate transfer tax.
The Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the state estate tax credit between 2002 and 2005 and replaced the credit with a deduction for state estate taxes for deaths that occur after December 31, 2004. Because R.S. 47:2432 only imposes the estate transfer tax if a state death tax credit is allow against the federal estate tax, no state estate transfer tax is due for deaths after December 31, 2004. However, the Economic Growth and Tax Relief Reconciliation Act of 2001 provisions will sunset on January 1, 2011, and the Internal Revenue Code will revert to the provisions that were in effect before it was passed unless further legislation is enacted to make its changes permanent. If Congress fails to make the Act’s changes permanent and the state estate tax credit is restored, the state estate transfer tax will again be due.
No. The inheritance tax exemptions do not apply to estate transfer tax.
There is no interest or penalties assessed on delinquent estate transfer taxes.
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