Tax to be on clear market value -- deductions allowed in determining value -- valuation of certain farm and business property
(1) The tax imposed must be upon the clear market value of the property passing by transfer to each person, institution, association, corporation, or body politic at the rates prescribed in this section and only upon the excess of the exemption granted to the person, institution, association, corporation, or body politic.
(2) In determining the clear market value of the property passing by the transfer, the following deductions and no other are allowed:
(a) debts of the decedent owing at the date of death, provided that any debt secured by decedent's joint interest in property and for which the decedent was jointly and severally liable is deductible only to the extent of one-half or other proper fraction representing decedent's share of the property;
(b) expenses of funeral and last illness;
(c) all Montana state, county, municipal, and federal taxes, including all penalties and interest, owing by decedent at the date of death;
(d) the ordinary expenses of administration, including:
(i) the commissions and fees of executors and administrators and their attorneys actually allowed and paid;
(ii) attorneys' fees, filing fees, necessary expenses, and closing costs incident to proceedings to terminate joint tenancies, termination of life estates and transfers in contemplation of death, and any and all other proceedings instituted for the determination of inheritance tax;
(e) federal estate taxes due or paid; and
(f) the annual gift exclusion provided in section 2503(b) of the Internal Revenue Code.
(3) In determining clear market value, the valuation of certain farm and other real property may be made under 72-16-331 through 72-16-342.
(1) The tax imposed must be upon the clear market value of the property passing by transfer to each person, institution, association, corporation, or body politic at the rates prescribed in this section and only upon the excess of the exemption granted to the person, institution, association, corporation, or body politic.
(2) In determining the clear market value of the property passing by the transfer, the following deductions and no other are allowed:
(a) debts of the decedent owing at the date of death, provided that any debt secured by decedent's joint interest in property and for which the decedent was jointly and severally liable is deductible only to the extent of one-half or other proper fraction representing decedent's share of the property;
(b) expenses of funeral and last illness;
(c) all Montana state, county, municipal, and federal taxes, including all penalties and interest, owing by decedent at the date of death;
(d) the ordinary expenses of administration, including:
(i) the commissions and fees of executors and administrators and their attorneys actually allowed and paid;
(ii) attorneys' fees, filing fees, necessary expenses, and closing costs incident to proceedings to terminate joint tenancies, termination of life estates and transfers in contemplation of death, and any and all other proceedings instituted for the determination of inheritance tax;
(e) federal estate taxes due or paid; and
(f) the annual gift exclusion provided in section 2503(b) of the Internal Revenue Code.
(3) In determining clear market value, the valuation of certain farm and other real property may be made under 72-16-331 through 72-16-342.
Tax to be on clear market value -- deductions allowed in determining value -- valuation Repealed of certain farm and business property
Sec. 36, Ch. 9, Sp. L. May 2000.
| EnactedEn. SectionSec. 1, ChapterCh. 65, Laws ofL. 1923 |
| AmendedAmd. SectionSec. 1, ChapterCh. 150, Laws ofL. 1925 |
| AmendedAmd. SectionSec. 1, ChapterCh. 105, Laws ofL. 1927 |
| AmendedAmd. SectionSec. 1, ChapterCh. 186, Laws ofL. 1935 |
| ReenactedRe-en. SectionSec. 10400.1, Revised Codes of MontanaR.C.M. 1935 |
| AmendedAmd. SectionSec. 1, ChapterCh. 5, Laws ofL. 1957 |
| AmendedAmd. SectionSec. 1, ChapterCh. 232, Laws ofL. 1959 |
| Revised Codes of MontanaR.C.M. 1947, 91-4407 |
| AmendedAmd. SectionSec. 1, ChapterCh. 573, Laws ofL. 1979 |
| AmendedAmd. SectionSec. 43, ChapterCh. 705, Laws ofL. 1979 |
| AmendedAmd. SectionSec. 33, ChapterCh. 592, Laws ofL. 1995 |