North Dakota Code 57-37.1-04 – Computation of tax
1. The amount of tax imposed upon the transfer of the North Dakota taxable estate must be equal to the maximum tax credit allowable for state death taxes against the federal estate tax imposed with respect to a decedent‘s estate which has a taxable situs in this state. If only a portion of a decedent’s estate has a taxable situs in this state, such maximum tax credit must be determined by multiplying the entire amount of the credit allowable against the federal estate tax for state death taxes by the percentage which the value of the portion of the decedent’s estate which has a taxable situs in this state bears to the value of the entire estate. For the purposes of this section, “federal estate tax” means the tax imposed on transfers of estates of decedents pursuant to the United States Internal Revenue Code of 1954, as amended, and “North Dakota taxable estate” means all property in a decedent’s federal gross estate that has a situs in North Dakota.
Terms Used In North Dakota Code 57-37.1-04
- Decedent: A deceased person.
- Gross estate: The total fair market value of all property and property interests, real and personal, tangible and intangible, of which a decedent had beneficial ownership at the time of death before subtractions for deductions, debts, administrative expenses, and casualty losses suffered during estate administration.
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
2. When property subject to the tax imposed by this chapter qualifies for valuation based on its use under section 2032A of the Internal Revenue Code, it has the same value for North Dakota estate tax purposes as it has for federal estate tax purposes. If, after the final determination of the tax imposed by this chapter, the property valued under section 2032A of the Internal Revenue Code is transferred or otherwise fails to qualify and an additional tax is imposed under section 2032A(c) of the Internal Revenue Code, any increase in the credit for state death taxes must be reported by the personal representative to the tax commissioner within ninety days after final determination of the increased credit. Upon notification, the tax commissioner shall reassess the estate tax.