N.J. Admin. Code § 18:26-3.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:26-3.2 - Amount and nature of tax

(a) The New Jersey estate tax is that amount representing the difference between the gross amount of the inheritance, legacy, and succession taxes actually paid to this State and any other states, territories, possessions, or the District of Columbia and the amount of the credit allowable against the Federal estate tax in effect on December 31, 2001, due to the United States.

Example: Mr. "A," a New Jersey resident, died on July 16, 2000, with a taxable estate of $ 700,000 for Federal estate tax purposes. The credit allowable for State taxes under the Federal estate tax law was $ 18,000. The amount actually paid to New Jersey for transfer inheritance tax was $ 6,000. The New Jersey estate tax due is $ 12,000.

(b) The New Jersey estate tax does not in any way interfere with the operation of the transfer inheritance tax so as to decrease any inheritance, succession, or legacy tax due or to become due this State or any other state, territory, possession, or the District of Columbia or to impair the lien of this State for any tax. The determination of the transfer inheritance tax chargeable need not be suspended until the estate tax, if any, payable to New Jersey, is assessed. It is not necessary to withhold the filing of the Federal estate tax return pending the determination of the amount of the New Jersey transfer inheritance tax chargeable. Where, however, the value of a bequest, in trust or otherwise, to a surviving spouse is made dependent upon the value of the decedent's adjusted gross estate, as finally fixed for Federal estate purposes, the New Jersey transfer inheritance tax chargeable cannot be determined until the Federal estate tax proceedings have been finally completed.

(c) The estate tax due this State is payable out of the same funds as those from which the Federal estate taxes are payable.

(d) The tax imposed upon the estates of resident decedents in New Jersey, unlike the transfer inheritance tax, does not constitute a lien on any of the property, real or personal, of the estate, and, therefore, waivers or consents to transfer are unnecessary.

(e) For estates with date of death on or after July 1, 1993, no assessment of additional estate tax shall be made after the expiration of more than four years from the date of filing of an estate tax return, except:

1. As allowed by the New Jersey State Uniform Tax Procedure Law, N.J.S.A. 54:49-6.b;

2. As allowed by N.J.S.A. 54:38-2; or

3. Where the Federal estate tax chargeable on final assessment has not been determined.

(f) The taxes assessed pursuant to (e)2 and 3 above must be made within four years from the date the additional or increased estate tax becomes payable or the Federal estate tax chargeable on final assessment is definitely determined and the New Jersey Transfer Inheritance Branch is properly notified pursuant to N.J.A.C. 18:26-3.4.

N.J. Admin. Code § 18:26-3.2

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018