Section 1, Chapter 2013-172, L.O.F., permanently extends the elimination of the requirement for filing a Florida estate tax return for the estates of decedents dying on or after January 1, 2005. The purpose of proposed changes to Rule Chapter 12C-3, ...

 

DEPARTMENT OF REVENUE

Corporate, Estate and Intangible Tax

RULE NOS.:RULE TITLES:

12C-3.0015Documents, Extensions, and Due Dates for Filing

12C-3.0025Jointly Owned Property

12C-3.0035Calculation of Tax upon Resident Decedent Estates

12C-3.0045Calculation of Tax upon Nonresident Decedent Estates

12C-3.0055Calculation of Tax upon Nonresident Alien Decedent Estates

12C-3.008Public Use Forms

12C-3.010Final Certificate and Nontaxable Certificate Mailing Procedure

12C-3.011Tax on Generation-Skipping Transfers

12C-3.012Releases

PURPOSE AND EFFECT: Section 1, Chapter 2013-172, L.O.F., permanently extends the elimination of the requirement for filing a Florida estate tax return for the estates of decedents dying on or after January 1, 2005. The purpose of proposed changes to Rule Chapter 12C-3, F.A.C. (Estate Tax), is to remove obsolete provisions and provide representatives of Florida decedents the final certificate or affidavit that will allow the removal of a Florida estate tax lien on real property owned by the decedent.

SUMMARY: The proposed amendments to Rule 12C-3.0015, F.A.C. (Affidavit – No Florida Estate Tax), provide that no Florida estate tax return is required when the decedent died on or after January 1, 2005, and remove obsolete provisions.

The proposed amendments to Rule 12C-3.008, F.A.C. (Public Use Forms), update the Florida estate tax return and the Affidavit of No Florida Estate Tax Due to reflect the provisions of section 1, Chapter 2013-172, L.O.F., and to remove obsolete forms.

The proposed amendments to Rule 12C-3.010, F.A.C. (Final Certificate and Nontaxable Certificate Mailing Procedure), provide the certificate or affidavit that will allow the removal of a Florida estate tax lien on real property owned by a Florida decedent.

The proposed repeal of the following rule sections of Rule Chapter 12C-3, F.A.C. (Estate Tax), remove provisions rendered obsolete by Section 1, Chapter 2013-172, L.O.F.: Rule 12C-3.0025, F.A.C. (Jointly Owned Property), Rule 12C-3.0035, F.A.C. (Calculation of Tax upon Resident Decedent Estates), Rule 12C-3.0045, F.A.C. (Calculation of Tax upon Nonresident Decedent Estates), Rule 12C-3.0055, F.A.C. (Calculation of Tax upon Nonresident Alien Decedent Estates), Rule 12C-3.011, F.A.C. (Tax on Generation-Skipping Transfers), and Rule 12C-3.012, F.A.C. (Releases).

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences with activities for providing the public with updated tax information, removing obsolete provisions, and rules of this nature, the adverse impact or regulatory cost, if any, do not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 198.08, 198.32(2), 213.06(1) FS.

LAW IMPLEMENTED: 92.525(1)(b), 119.071(5), 198.02, 198.03, 198.031, 198.04, 198.05, 198.08, 198.13, 198.14, 198.15, 198.155, 198.19, 198.22, 198.23, 198.26, 198.32, 198.33(1), 198.38, 198.39, 213.37, 837.06 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: November 13, 2013, 2:00 p.m.

PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Tammy Miller at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Debra Gifford, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone: [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

12C-3.0015 Affidavit – No Florida Estate Tax Documents, Extensions, and Due Dates for Filing.

(1) Decedents who died prior to January 1, 2005, or, after December 31, 2012.

(a)1. When the decedent died prior to January 1, 2005, or after December 31, 2012, and the personal representative of an estate is required to file a federal estate tax form (Form 706 or 706-NA), the personal representative of every Florida resident, nonresident, or alien decedent whose estate includes Florida real property is required to file with the Department within nine months from the date of decedent’s death:

a. A Florida Estate Tax Return (Form F-706, incorporated by reference in Rule 12C-3.008, F.A.C.);

b. A copy of the executed federal estate tax return; and

c. Any payment of the Florida estate tax due.

2. When the estate owes Florida estate tax, upon receipt of a copy of the closing letter issued by the Internal Revenue Service and the payment of any Florida estate tax, penalty, or interest due, the Department will issue a Final Certificate for Estate Tax (Form DR-304). This certificate has the same effect as a receipt.

3. If the Internal Revenue Service determines that the estate owes no federal estate tax, a nontaxable certificate may be requested from the Department when filing Form F-706. Upon receipt of a copy of the closing letter issued by the Internal Revenue Service, the Department will issue a Nontaxable Certificate and Receipt for Estate Tax (Form DR-302).

(b) To remove any Florida estate tax lien on the decedent’s Florida real property, certificates issued by the Department (Forms DR-302 and DR-304) must be filed with the clerk of the circuit court in every county where the decedent owned real property.

(2) Decedents who died on or after January 1, 2005, and prior to January 1, 2013.

(1)(a) No Florida estate tax is due and no Florida estate tax return is required to be filed by the personal representative of an estate when the decedent died on or after January 1, 2005, and prior to January 1, 2013.

(2)(a)(b) When the personal representative is not required to file a federal estate tax form (Form 706 or 706-NA), an Affidavit of No Florida Estate Tax Due (Form DR-312, incorporated by reference in Rule 12C-3.008, F.A.C.) may must be filed with the clerk of the circuit court in every county where the decedent owned real property to remove any Florida estate tax lien on the decedent’s real property. This affidavit is admissible as evidence that no Florida estate tax is due by the estate.

(b)(c) When the personal representative is required to file a federal estate tax form (Form 706 or 706-NA) and owes no Florida estate tax, an Affidavit of No Florida Estate Tax Due When Federal Return is Required (Form DR-313, incorporated by reference in Rule 12C-3.008, F.A.C.) may must be filed with the clerk of the circuit court to remove any Florida estate tax lien on the decedent’s real property. This affidavit is admissible as evidence that no Florida estate tax is due by the estate.

(3) Domicile Statement – If the estate is filing as a nonresident or nonresident alien, the personal representative must file a Domicile Statement, (Form DR-310, incorporated by reference in Rule 12C-3.008, F.A.C.), with the copies of the executed Florida Form F-706 and executed federal form 706.

(4) Extensions.

(a) If an extension of time is required for filing the copy of the federal form 706 or paying the Florida estate tax, or both, the personal representative must file a copy of the federal extension request with the Department within 30 days after filing such request with the federal taxing authorities. If the federal Internal Revenue Service grants the extension, the personal representative must file a copy of the approved federal extension with the Florida Department of Revenue within 30 days of receiving the approved federal extension. The Department will grant the same extension to pay or file with Florida as granted by the federal Internal Revenue Service.

(b) An extension of time to file the copy of the federal form 706 return does not extend the time to pay the Florida estate tax, and interest will accrue on any tax due and not paid from the due date until the tax is paid, and penalties will also be assessed. If an extension of time to pay is granted on the federal extension form, only interest will be assessed during the extension period. Penalties will not be assessed.

(5) A copy of every document in regard to the federal estate tax submitted to or received from the Federal Internal Revenue Service must be sent to the Department of Revenue.

Rulemaking Authority 198.08, 198.32(2), 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04, 198.05, 198.13, 198.14, 198.15, 198.32 FS. History–New 12-13-94, Amended 1-22-01, 4-14-09, 1-25-12,__________.

 

12C-3.0025 Jointly Owned Property.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04 FS. History–New 12-13-94, Repealed___________.

 

12C-3.0035 Calculation of Tax upon Resident Decedent Estates.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02 FS. History–New 12-13-94, Amended 1-22-01, Repealed___________.

 

12C-3.0045 Calculation of Tax upon Nonresident Decedent Estates.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.03, 198.22 FS. History–New 12-13-94, Amended 1-22-01, Repealed___________.

 

12C-3.0055 Calculation of Tax upon Nonresident Alien Decedent Estates.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.04 FS. History–New 12-13-94, Amended 1-22-01, Repealed.

 

12C-3.008 Public Use Forms.

(1)(a) The following public-use forms and instructions are employed by the Department in its administration of the Florida estate tax and are hereby adopted by reference.

(b) No change.

Form NumberTitleEffective Date

(2) DR-308Request and Certificate for Waiver and

Release of Florida Estate Tax Lien (R. 10/09)06/10

(3) DR-310Domicile Statement (R. 10/09)06/10

(2)(4) DR-312Affidavit of No Florida Estate Tax Due

(R. 08/13 06/11)___ 01/12

(http://www.flrules.org/Gateway/reference.asp?No=Ref-___ 00839)

(3)(5) DR-313Affidavit of No Florida Estate Tax Due When

Federal Return is if Required (R. N. 06/11)01/12

(http://www.flrules.org/Gateway/reference.asp?No=Ref-00840)

(4)(6) F-706Florida Estate Tax Return (R. 10/13 06/11)              ___ 01/12

(http://www.flrules.org/Gateway/reference.asp?No=Ref-___ 00841)

Rulemaking Authority 198.08, 198.32(2), 213.06(1) FS. Law Implemented 92.525(1)(b), 119.071(5), 198.08, 198.13, 198.22, 198.23, 198.26, 198.32(2), 198.33(1), 198.38, 198.39, 213.37, 837.06 FS. History–New 9-26-77, Formerly 12C-3.08, Amended 1-11-93, 8-25-94, 1-22-01, 5-4-03, 10-30-06, 11-6-07, 4-14-09, 6-28-10, 1-25-12,___________.

 

12C-3.010 Final Certificate and Nontaxable Certificate Mailing Procedure.

(1) When the decedent died prior to January 1, 2005, or after December 31, 2010, Section 198.19, F.S., requires that a Final Certificate (DR-304) be issued to the personal representative. However, if an attorney is representing the estate and files the estate tax return, the Final Certificate will be mailed to the attorney, and a copy of the Final Certificate transmittal letter will be sent to the personal representative. Otherwise, the Final Certificate will be mailed to the personal representative. If it is determined that no estate taxes are due to the State of Florida, the Department (upon receipt of a $5.00 fee for each certificate requested) will issue a Nontaxable Certificate to the personal representative, administrator, curator, heirs, devisees, or legatees of the decedent.

(2) For decedents who died on or after January 1, 2005, and prior to January 1, 2011, the Department will not issue a Final Certificate or Nontaxable Certificate to the personal representative of the estate, as defined in Section 198.01(2), F.S. The personal representative may file an Affidavit of No Florida Estate Tax Due (Form DR-312, incorporated by reference in Rule 12C-3.008, F.A.C.) or an Affidavit of No Florida Estate Tax Due When Federal Return is Required (Form DR-313, incorporated by reference in Rule 12C-3.008, F.A.C.), as provided in Rule 12C-3.0015, F.A.C., to evidence that no Florida estate tax liability is due.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.13(2), 198.19 FS. History–New 6-7-78, Formerly 12C-3.10, Amended 1-11-93, 8-25-94, 12-13-94, 4-14-09,____________.

 

12C-3.011 Tax on Generation-Skipping Transfers.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.031, 198.08, 198.155 FS. History–New 8-25-94, Amended 12-13-94, Repealed__________.

 

12C-3.012 Releases.

Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.22 FS. History–New 8-25-94, Amended 12-13-94, 1-22-01, 5-4-03, Repealed___________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Debra Gifford, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone: [phone]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 24, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: A Notice of Proposed Rule Development was published in the Florida Administrative Register on August 2, 2013 (Vol. 39, No. 150, pp. 3828 - 3829), to advise the public of the proposed amendments to Rule Chapter 12C-3, F.A.C. (Estate Tax), and to provide that, if requested in writing, a rule development workshop would be held on August 22, 2013. No request was received by the Department. No written comments were received by the Department.