AN ACT EXPANDING THE EXEMPTION OF THOSE WHO MUST FILE AN APPLICATION FOR DETERMINATION OF TAX IN JOINT TENANCY TO INCLUDE LINEAL DESCENDANTS AND STEPCHILDREN OF THE DECEDENT; AMENDING SECTIONS 72-16-502, AND 72-16-503, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 72-16-502, MCA, is amended to read:

"72-16-502. Determination and payment of tax when no personal representative -- procedure -- exception. (1) For the purposes of this section, a decedent is one who dies leaving no property that requires the appointment of a personal representative and who:

(a) was the owner of a life estate that terminated at death;

(b) was the owner of property with another or others as a joint tenant with right of survivorship and not as a tenant in common; or

(c) was the owner of any other interest in property requiring the determination of inheritance tax because of death.

(2) Except as provided in subsection (6), a remainderman, surviving joint tenant, or other interested party shall, upon the death of a decedent, file with the department of revenue:

(a) a copy of the death certificate;

(b) a verified application, in a form prescribed by the department, containing information that the department considers necessary; and

(c) evidence of the instruments that created the life estate, joint tenancy, or other interest requiring determination of inheritance tax, if required by the department.

(3) Upon receipt of the application, the department shall:

(a) stamp the filing date upon the application;

(b) issue a certificate showing the inheritance tax due, if any;

(c) affix the certificate to a certified copy of the application and return the certificate and copy to the applicant or the applicant's attorney; and

(d) affix a copy of the certificate to the original application and keep it on file with the department.

(4) The applicant shall pay the inheritance tax determined to the county treasurer for transmittal to the state treasurer. The county treasurer shall issue a receipt for the payment of the tax.

(5) If disputes arise as to tax computation, they must be resolved as provided under the laws applicable to the determination of inheritance taxes in estates.

(6) A surviving joint tenant described in 72-16-313(1) or (2) of a decedent whose aggregate value of the interest in the joint property is less than the federal estate tax filing requirement is not required to file under subsection (2)."

Section 2. Section 72-16-503, MCA, is amended to read:

"72-16-503. Additional filings required when real property involved and no representative -- release of lien. (1) If an interest in real property is involved under 72-16-502, the applicant shall record with the clerk and recorder of each county in which the real property or any part of the property is located a document containing those matters required by 7-4-2613(3). A surviving joint tenant described in 72-16-313(1) or (2) is not subject to the recording requirements under 7-4-2613(3).

(2) A surviving joint tenant described in 72-16-313(1) or (2) with an interest in real property under 72-16-502 shall record with the clerk and recorder of each county in which the real property is located an acknowledged statement that the holder of the nonprobate interest has died and that the holder's interest in the property is terminated. The acknowledged statement must include a legal description of the real property.

(3) The recording of the documents under subsection (1) or (2) constitutes release of any lien for inheritance taxes."

Section 3. Effective date. [This act] is effective on passage and approval.

Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to estates of persons dying after December 31, 1998.

- END -

I hereby certify that the within bill,

HB 0357, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 357

INTRODUCED BY J. COBB

AN ACT EXPANDING THE EXEMPTION OF THOSE WHO MUST FILE AN APPLICATION FOR DETERMINATION OF TAX IN JOINT TENANCY TO INCLUDE LINEAL DESCENDANTS AND STEPCHILDREN OF THE DECEDENT; AMENDING SECTIONS 72-16-502, AND 72-16-503, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.