This bill proposes amendments to Minnesota's estate tax laws, specifically increasing the general subtraction amount and the combined cap on subtractions for qualified small business property and qualified farm property.

Key Provisions:

1. Estate Tax Return Requirement:

   • The personal representative of a decedent’s estate must file a Minnesota estate tax return if:
     1. A federal estate tax return is required, or
        
     2. The sum of the federal gross estate and adjusted taxable gifts made within three years of death exceeds a certain threshold.
   • The bill increases this threshold to $6,000,000 for estates of decedents dying in 2020 and beyond, up from the previous incremental increases.

2. Tax Computation and Filing:

   • The estate tax return must include a calculation of the Minnesota estate tax due and must be signed by the personal representative.

Purpose:

The bill intends to provide tax relief by allowing for a higher general subtraction in estate tax calculations, which could reduce the overall taxable estate, particularly benefiting small business owners and farmers by increasing the exemption amounts for these properties.

Status:

• Introduced in the Senate.
• Referred to the Taxes Committee for review.

This legislation, if passed, would effectively raise the Minnesota estate tax exemption, potentially reducing estate tax liabilities for many estates within the state.