(1)(A) "Cost-of-living adjustment" means the ratio of CPI for the preceding calendar year and the CPI for the base year.
(B) For the purposes of this paragraph, the term:
(i) "Base year" means the calendar year beginning January 1, 2017.
(ii) "CPI" means, for any calendar year, the average of the Consumer Price Index for the Washington-Baltimore Metropolitan Statistical Area for All-Urban Consumers published by the Department of Labor, or any successor index, as of the close of the 12-month period ending on July 31 of such calendar year.
(1A) “Council” means the Council of the District of Columbia.
(2) “Decedent” means a deceased person who died on or after April 1, 1987.
(3) “District” means the District of Columbia.
(3A) “Domestic partner” shall have the same meaning as provided in § 32-701(3).
(4) “Federal credit” means:
(A) For a decedent whose death occurs after March 31, 1987, but before January 1, 2002, the maximum amount of credit for state death taxes allowable by section 2011 of the United States Internal Revenue Code of 1954, approved August 6, 1954 (68A Stat. 3; 26 U.S.C. § 1 et seq.), as it existed on January 1, 1986.
(B) For a decedent whose death occurs after December 31, 2001, but before January 1, 2003:
(i) The maximum amount of credit for state death taxes allowed by section 2011 of the Internal Revenue Code [26 U.S.C. § 2011];
(ii) Any scheduled increase in the unified credit provided in section 2010 of the Internal Revenue Code [26 U.S.C. § 2010] or thereafter shall not apply and the amount of the unified credit shall be $220,550; and
(iii) An estate tax return shall not be required to be filed if the decedent’s gross estate does not exceed $675,000.
(C) For a decedent whose death occurs after December 31, 2002, but before January 1, 2017:
(i) The maximum amount of credit for state death taxes allowed by section 2011 of the Internal Revenue Code;
(ii) Any scheduled increase in the unified credit provided in section 2010 of the Internal Revenue Code or thereafter shall not apply and the amount of the unified credit shall be $ 345,800; and
(iii) An estate tax return shall not be required to be filed if the decedent’s gross estate does not exceed $ 1 million.
(D) For a decedent whose death occurs after December 31, 2016, but before January 1, 2018:
(i) The maximum amount of credit for state death taxes allowed by section 2011 of the Internal Revenue Code;
(ii) Any scheduled increase in the unified credit provided in section 2010 of the Internal Revenue Code or thereafter shall not apply and the amount of the unified credit shall be $745,800; and
(iii) An estate tax return shall not be required to be filed if the decedent's gross estate does not exceed $2 million.
(E) For a decedent whose death occurs after December 31, 2017, but before January 1, 2021:
(i) The maximum amount of credit for state death taxes allowed by section 2011 of the Internal Revenue Code;
(ii) The amount of the unified credit shall be $2,185,800, increased annually, beginning with the year commencing on January 1, 2019, by the cost-of-living adjustment; and
(iii) An estate tax return shall not be required to be filed if the decedent's gross estate does not exceed the applicable zero bracket amount.
(F) For a decedent whose death occurs after December 31, 2020:
(i) The maximum amount of credit for state death taxes allowed by section 2011 of the Internal Revenue Code;
(ii) The amount of the unified credit shall be $1,545,800, increased annually, beginning with the year commencing on January 1, 2022, by the cost-of-living adjustment; and
(iii) An estate tax return shall not be required to be filed if the decedent's gross estate does not exceed the applicable zero bracket amount.
(5) “Gross estate” means:
(A) For a decedent whose death occurs before January 1, 2008, the meaning defined in the Internal Revenue Code.
(B) For a decedent whose death occurs after December 31, 2007, the meaning defined in the Internal Revenue Code, except that for the purpose of calculating District estate taxes, gross estate shall be calculated as if federal estate tax law recognized a domestic partner in the same manner as a spouse.
(6) “Internal Revenue Code” means the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1 et seq.), in effect for federal estate tax purposes on January 1, 2001, unless a different meaning is clearly required by the provisions of this chapter; provided, that if the federal estate tax is not in effect at the time of the decedent’s death, it means the Internal Revenue Code as in effect immediately before the federal estate tax ceased to be in effect.
(7) “Mayor” means the Mayor of the District of Columbia.
(8) “Nonresident” means a decedent who was domiciled outside the District at his death.
(9) “Personal representative” means the personal representative or other person appointed by the court to administer the property of the decedent. If there is no personal representative or other person appointed, qualified, and acting within the District, then any person in actual or constructive possession of any property having a situs in the District that is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the District estate tax due with respect to the property.
(10) “Resident” means a decedent who was domiciled in the District at his or her death.
(11) “State” means any state, territory, or possession of the United States and the District.
(12) “Taxable estate” means:
(A) For a decedent whose death occurs prior to January 1, 2008, the meaning defined in section 2501 of the Internal Revenue Code of 1954.
(B) For a decedent whose death occurs after December 31, 2007, but before January 1, 2015, the meaning defined in section 2051 of the Internal Revenue Code of 1954, except that for the purpose of calculating District estate taxes, taxable estate shall be calculated as if federal estate tax law recognized a domestic partner in the same manner as a spouse.
(C) For a decedent whose death occurs after December 31, 2014, the meaning defined in section 2051 of the Internal Revenue Code, but without reduction for the deduct ion provided in section 2058 of the Internal Revenue Code, and calculated as if the federal estate tax recognized a domestic partner in the same manner as a spouse.
(12A) “Taxable situs” means with regard to:
(A) Real property, the place where the property is situated;
(B) Tangible personal property, the place where the property is customarily located at the time of the decedent’s death; and
(C) Intangible personal property, the domicile of the decedent at the time of the decedent’s death; provided, that intangible personal property used in a trade or business in the District shall have a taxable situs in the District regardless of the domicile of the owner.
(13) “Value” means value as finally determined for federal estate tax purposes, or otherwise defined under the Internal Revenue Code.
(14) "Zero bracket amount" means:
(A) For a decedent whose death occurs after December 31, 2015, but before January 1, 2017, $1 million;
(B) For a decedent whose death occurs after December 31, 2016, but before January 1, 2018, $2 million;
(C) For a decedent whose death occurs after December 31, 2017, but before January 1, 2021, $5.6 million, increased annually, beginning with the year commencing on January 1, 2019, by the cost-of-living adjustment; or
(D) For a decedent whose death occurs after December 31, 2020, $4 million, increased annually, beginning with the year commencing on January 1, 2022, by the cost-of-living adjustment.
§ 47–3702. Tax on transfer of taxable estate of residents; amounts; credit; property of resident defined.
(a) A tax in the amount of the federal credit is imposed on the transfer of the taxable estate having its taxable situs in the District of every resident decedent dying after March 31, 1987, but before January 1, 2016, subject, where applicable, to the credit provided for in subsection (b) of this section.
(a-1) A tax is imposed on the taxable estate of every resident decedent dying after December 31, 2015, as follows:
(1) The rate of tax shall be 16%; except, that the portion of the taxable estate that does not exceed the current zero bracket amount shall be taxed at 0%, and if the taxable estate exceeds the zero bracket amount, the following tax rates shall be applied to the incremental values of the taxable estate above the zero bracket amount:
(A) The rate of tax on the taxable estate over $1 million but not over $1.5 million shall be 6.4%;
(B) The rate of tax on the taxable estate over $1.5 million but not over $2 million shall be 7.2%;
(C) The rate of tax on the taxable estate over $2 million but not over $2.5 million shall be 8%;
(D) The rate of tax on the taxable estate over $2.5 million but not over $3 million shall be 8.8%;
(E) The rate of tax on the taxable estate over $3 million but not over $3.5 million shall be 9.6%;
(F) The rate of tax on the taxable estate over $3.5 million but not over $4 million shall be 10.4%;
(G) The rate of tax on the taxable estate over $4 million but not over $5 million shall be 11.2%;
(H) The rate of tax on the taxable estate over $5 million but not over $6 million shall be 12%;
(I) The rate of tax on the taxable estate over $6 million but not over $7 million shall be 12.8%;
(J) The rate of tax on the taxable estate over $7 million but not over $8 million shall be 13.6%;
(K) The rate of tax on the taxable estate over $8 million but not over $9 million shall be 14.4%; and
(L) The rate of tax on the taxable estate over $9 million but not over $10 million shall be 15.2%.
(2) If any real or tangible personal property of a resident decedent has a taxable situs outside the District, the amount of the tax due under this section shall be reduced by the proportion that the value of the real or tangible property outside the District bears to the amount of the gross estate of the resident decedent.
(b) For a decedent dying before January 1, 2016, if any real or tangible personal property of a resident is located outside the District and subject to a death tax imposed by another state for which a credit is allowed under § 2011 of the Internal Revenue Code of 1954, the amount of tax due under this section shall be credited with the lesser of:
(1) The amount of the death tax paid the other state and that qualifies for credit against the federal estate tax; or
(2) An amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of that part of the gross estate over which another state or states have jurisdiction to the same extent that the District would exert jurisdiction under this chapter with respect to the residents of the other state or states and the denominator of which is the value of the decedent’s gross estate.
(c) Repealed.
§ 47–3703. Tax on transfer of taxable estate of nonresidents; property of nonresident defined.
(a) A tax in an amount computed as provided in this section is imposed on the transfer of every nonresident’s taxable estate having its taxable situs in the District.
(b) For every nonresident decedent dying before January 1, 2016, the tax shall be an amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of that part of the gross estate over which the District has jurisdiction for estate tax purposes and the denominator of which is the value of the decedent’s gross estate.
(b-1) For every nonresident decedent dying after December 31, 2015, the tax shall be an amount computed by multiplying the tax determined under § 47-3702(a-1) by a fraction, the numerator of which shall be the value of that part of the gross estate that has its taxable situs in the District and the denominator of which shall be the value of the nonresident decedent’s gross estate.
(c) Repealed.
§ 47–3704. Authority for Mayor to compromise tax.
In all cases in which the Mayor claims that a decedent was domiciled in the District at the time of his or her death and the taxing authorities of a state or states make a similar claim with respect to their state or states, the Mayor may compromise the taxes imposed by this chapter.
§ 47–3705. Filing returns; payment of tax due.
(a)(1) The personal representative of every estate subject to the tax imposed by this chapter shall file with the Mayor, within 10 months after the death of the decedent:
(A) A return for the tax due under this chapter; and
(B) A copy of the federal estate tax return, if any.
(2) A personal representative shall not be required to file a return if the gross estate does not exceed $1 million or the zero bracket amount, whichever is higher.
(b) If the personal representative has obtained an extension of time for filing the federal estate tax return, the filing required by subsection (a) of this section shall be similarly extended until 30 days after the end of the time period granted in the extension of time for the federal estate tax return. Upon obtaining an extension of time for filing the federal estate tax return, the personal representative shall provide the Mayor with a copy of the extension of time.
(c) The tax due under this chapter shall be paid by the personal representative to the Mayor no later than the date when the return covering this tax is required to be filed under subsection (a) or (b) of this section.
(d) Whenever the Mayor determines that the tax due under this chapter has been overpaid, the estate shall be entitled to a refund of the amount of the overpayment. An application for the refund shall be made to the Mayor within 3 years from the date of payment.
§ 47–3706. Jeopardy assessments. [Repealed]
Repealed.
§ 47–3707. Authority for Mayor to file.
If a person fails to make and file a return at the time prescribed by law or by regulations, or makes, willfully or otherwise, a false or fraudulent return, the Mayor shall make the return from his own knowledge and from information obtained through testimony or otherwise. The return made and subscribed by the Mayor shall be prima facie good and sufficient for all legal purposes.
§ 47–3708. Amended returns.
(a) If the personal representative files an amended federal estate tax return, he or she shall, within 30 days after filing the amended federal estate tax return, file with the Mayor an amended return covering the tax imposed by this chapter, accompanying the amended return with a copy of the amended federal estate tax return. If the personal representative is required to pay an additional tax under this chapter pursuant to the amended return, he or she shall pay the tax, together with interest in accordance with § 47-4201.01 at the time of filing the amended return.
(b) If, upon final determination of the federal estate tax due, a deficiency is assessed, the personal representative shall within 30 days after this determination give written notice of the deficiency to the Mayor. If any additional tax is due under this chapter by reason of this determination, the personal representative shall pay the additional tax, together with interest in accordance with § 47-4201.01 at the time of filing the notice.
§ 47–3709. Testimony; production of books and records. [Repealed]
Repealed.
§ 47–3710. Certification of payment by Mayor.
When the Mayor is satisfied that the tax liability imposed by this chapter has been fully discharged or provided for, the Mayor may certify that fact.
§ 47–3711. Lien for taxes. [Repealed]
Repealed.
§ 47–3712. Liability of personal representative.
The tax, interest, and penalties imposed by this chapter shall be paid by the personal representative. If any personal representative distributes either in whole or in part any of the property of an estate to the beneficiaries or creditors without having paid or secured the tax, interest, or penalties due pursuant to this chapter, he or she shall be personally liable for the tax, interest, and penalties so due, or so much of the tax, interest, and penalties as may remain due and unpaid, to the full extent of any property belonging to the person or estate that may have or will come into his or her custody or control.
§ 47–3713. Duty of personal representative.
The personal representative of every decedent subject to the tax imposed by this chapter shall, before distribution of the estate, pay to the Mayor any taxes, penalties, and interest due under this chapter. The taxes, penalties, and interest shall be paid by the personal representative to the extent of assets subject to his or her control. Each payment shall be applied, first, to any interest due on the tax, second, to any penalty imposed by this chapter, and then the balance, if any, to the tax.
§ 47–3714. Apportionment required.
(a) Except as may be otherwise provided in the decedent’s will, whenever it appears upon any settlement of accounts or in any other appropriate action or proceeding that a person acting in a fiduciary capacity has paid an estate tax levied or assessed under the provisions of the estate tax law of the District or the United States upon or with respect to any property required to be included in the gross estate of a decedent under the provisions of either law, the amount of the tax so paid shall be prorated among the persons interested in the estate to whom the property is or may be transferred or to whom any benefit accrues. Apportionment shall be made in the proportion that the value of the property, interest, or benefit of each person bears to the total value of the property, interests, and benefits received by all persons interested in the estate, except that in making proration each person shall have the benefit of any exemptions, deductions, and exclusions allowed by law in respect of the persons or the property passing to him or her.
(b) Notwithstanding subsection (a) of this section, in cases in which a trust is created or other provisions made in which any person is given an interest in income, an estate for years, an estate for life, or other temporary interest or estate in any property or fund, the tax on the temporary interest or estate shall be charged against and paid out of the corpus of that property or fund without apportionment between temporary interests or estates and remainders.
§ 47–3715. Monthly report of Register of Wills.
The Register of Wills shall report to the Mayor on every order appointing a personal representative in the District for the estate of any decedent. The report shall be in a form prepared by the Register of Wills, shall be filed with the Mayor at least once every month, and shall contain the name of the decedent, the date of his or her death, the name and address of the personal representative, and the value of the estate, as shown by the petition for probate.
§ 47–3716. Final account.
No final account in any probate proceeding of a personal representative who is required to file a federal estate tax return shall be approved by the court unless the court finds that the tax imposed on the property by this chapter, including applicable interest, has been paid in full or that no tax is due.
§ 47–3717. Authority of Mayor to determine tax; deficiencies in tax.
(a) The Mayor shall have the authority to determine, redetermine, assess, or reassess any tax due under this chapter. Assessments of any deficiencies in the tax due under this chapter, or any interest and penalties thereon, shall be governed by § 47-4312.
(b) Any assessment of tax, penalties, and interest that has become final pursuant to § 47-4312 shall be due and payable within 10 days after service of a final assessment by the Mayor or service of a final order by the Office of Administrative Hearings, as applicable.
(c) Except as provided in § 47-4312, any person aggrieved by an assessment of a deficiency in tax under the provisions of this section may appeal to the Superior Court of the District of Columbia in the same manner and to the same extent as set forth in §§ 47-3303, 47-3304, and 47-3308.
§ 47–3718. Penalties. [Repealed]
Repealed.
§ 47–3719. Secrecy of returns.
(a) Except as may be necessary for the enforcement of this chapter, it shall be unlawful for any officer or employee, or any former officer or employee, of the District to divulge or make known in any manner any particulars set forth or disclosed in any return required to be filed under this chapter, and neither the original nor a copy of any return desired for use in litigation in court shall be furnished where neither the District nor the United States is interested in the result of the litigation, whether or not the request is contained in an order of the court.
(b) Nothing contained in this section shall be construed to prevent the furnishing to a taxpayer of a copy of his or her return upon the payment of a fee as the Mayor may prescribe by rule.
(c) The provisions of this section shall also be applicable to any federal, state, or local inheritance or estate tax returns or copies and to any other federal, state, or local inheritance or estate tax information either submitted by the taxpayer or otherwise obtained.
(d) Notwithstanding the provisions of subsection (a) of this section, any tax returns or other tax information required by this chapter may be disclosed to any official of the District having a right to the information in his or her official capacity or to a contractor to the extent necessary for the processing, storage, transmission, or reproduction of the tax information or for the programming, maintenance, repair, testing, and procurement of equipment for purposes of tax administration. The provisions of subsections (a) and (f) of this section shall be applicable to all contractors and former contractors and to their officers and employees.
(e) The Mayor may permit the proper officer of the United States or of any state imposing a similar tax to inspect the tax returns filed with the Mayor pursuant to this chapter or may furnish the officer or representative a copy of the tax returns if the United States or the state grants substantially similar privileges to the Mayor.
(f) Any violation of the provisions of this section shall be a misdemeanor and, upon conviction, shall be punishable by a fine of not more than the amount set forth in [§ 22-3571.01], imprisonment for not more than 1 year, or both. All prosecutions under this section shall be brought in the Superior Court of the District of Columbia on information by the Attorney General for the District of Columbia or his or her assistants in the name of the District of Columbia.
§ 47–3720. Rules.
The Mayor shall issue rules necessary to carry out the provisions of this chapter and to provide for the granting of extensions of time within which to perform the duties imposed by this chapter, in accordance with subchapter I of Chapter 5 of Title 2.
§ 47–3721. Report by Mayor concerning amendment, repeal, or replacement of Internal Revenue Code of 1954.
Within 90 days after any amendment, repeal, or replacement of the Internal Revenue Code of 1954, the Mayor shall report to the Council concerning the amendment, repeal, or replacement. The reports shall include, but not be limited to, an analysis of the impact of conformity to the amendment, repeal, or replacement on District taxpayers, and on District of Columbia government revenues over the next 5-year period, and a recommendation as to whether any change in District law should be made as a result of the amendment, repeal, or replacement.
§ 47–3722. Effect of repealers.
(a) The repeal by this act of any provision of law shall not affect any act done or any right accrued or accruing under the provision of law before April 1, 1987, or any suit or proceeding had or commenced before April 1, 1987, but all rights and liabilities under prior law shall continue and may be enforced in the same manner and to the same extent as if the repeal had not been made.
(b) All offenses committed, and all penalties incurred prior to April 1, 1987, under any provision of law repealed, may be prosecuted and punished in the same manner and with the same effect as if this chapter had not been enacted.
