D.C. Code § 47-3701

Current through codified legislation effective October 30, 2024

Section 47-3701 - Definitions

For the purpose of this chapter, the term:

(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.

(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.

D.C. Code § 47-3701

Amended by D.C. Law 23-149,§ VII-Q-7192, 67 DCR 10493, eff. 12/3/2020.

Feb. 24, 1987, D.C. Law 6-168, § 2, 33 DCR 7008; Feb. 28, 1987, D.C. Law 6-209, § 402(a), 34 DCR 689; June 24, 1987, D.C. Law 7-9, § 3, 34 DCR 3283; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 5, 2003, D.C. Law 14-307, § 1402(a), 49 DCR 11664; Nov. 13, 2003, D.C. Law 15-39, § 2102(a), 50 DCR 5668; Mar. 2, 2007, D.C. Law 16-191, § 109(e), 53 DCR 6794; Sept. 12, 2008, D.C. Law 17-231, § 41(o), 55 DCR 6758; Feb. 26, 2015, D.C. Law 20-155, § 7012(f)(1), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 7044, 62 DCR 10905; Dec. 13, 2017, D.C. Law 22-33, § 7173, 64 DCR 7652; Oct. 30, 2018, D.C. Law 22-168, § 7232(b), 65 DCR 9388.

Section 2103 of D.C. Law 15-39 provided: "Section 2102 shall apply as of January 1, 2003."

Section 109(f) of D.C. Law 16-191 provided: "Subsections (b) and (c) of this section shall apply as of April 1, 2004."

Applicability

Section 7233 of D.C. Law 22-168 provided that the amendment made to this section by section 7232(b) of D.C. Law 22-168 shall apply as of January 1, 2018.

Section 7174 of Law 22-33 provided that the changes made to this section by Law 22-33 shall apply as of January 1, 2018.