Did Kansas repeal its succession tax, and what should estates do about returns already filed?

Plain-English summary

In the final days of the 2003 session, the Kansas Legislature passed HB2005. New Section 49 provides for the retroactive repeal of the succession tax that had been imposed on the estates of decedents dying on or after June 6, 2002.

• The Department asked qualifying estates to stop filing succession tax returns immediately.
• Succession tax already paid will be refunded. Because the new law wasn't effective until July 1, 2003 (the Department anticipated the Governor's approval), refunds would not be issued until after that date.
• The Kansas estate tax (the "pick-up tax") was NOT changed — it must still be reported and paid on time, or penalties and interest apply.
• Until redesigned forms were available, estates were told to keep using the current forms and simply ignore the portions dealing with the succession tax.

This notice (approved May 13, 2003) was issued before the bill was signed and anticipated a July 1, 2003 effective date. The companion Notice 03-07 (refund procedures) and Notice 03-08 (estate pick-up tax) — both issued after HB2005 was signed — confirm the bill became effective May 22, 2003.

What this means for you

If you're settling an estate of someone who died on or after June 6, 2002 and you paid Kansas succession tax, that tax was repealed and is refundable — see Notice 03-07 for how to claim it (Form K-709). But don't confuse the succession tax with the estate "pick-up" tax: the pick-up tax survives, so keep filing and paying it on time to avoid penalties and interest.

Common questions

Q: Was the Kansas succession tax repealed?
A: Yes — retroactively, for estates of decedents dying on or after June 6, 2002, by HB2005 New Section 49.

Q: I already paid succession tax. Can I get it back?
A: Yes; it will be refunded. See Notice 03-07 for the refund procedure (Form K-709).

Q: Does this repeal the Kansas estate tax too?
A: No. The estate (pick-up) tax was not repealed and must still be reported and paid on time.

Citations and references

• 2003 House Bill 2005, New Section 49 -- retroactive repeal of the Kansas succession tax.
• Notice 03-07 -- succession tax refund procedures.
• Notice 03-08 -- implications of HB2005 for the Kansas estate (pick-up) tax.

Subject

Succession Tax Repealed Retroactively

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 03-06

Original ruling text

Notice
Notice Number: 03-06
Tax Type: Estate Tax
Brief Description: Succession Tax Repealed Retroactively
Keywords:
Approval Date: 05/13/2003

Body:
Office of Policy & Research

                                               NOTICE 2003-06

                                    Succession Tax Repealed Retroactively

In the final days of the 2003 Session, the Kansas Legislature passed HB2005. New Section 49 of the bill provides for
the retroactive repeal of the succession tax that was imposed on the estates of decedent’s dying on or after June 6,
2002.

After approval by the Governor, the provisions of HB2005 will become effective July 1, 2003. Because approval is
anticipated the Department of Revenue is asking that estates of decedent’s dying on or after June 6, 2002 stop filing
succession tax returns immediately.

Due to the retroactive nature of the repeal, succession tax that has been paid will be refunded. The general procedure
for this process is set forth in the new law, and the Department of Revenue is in the process of preparing the required
forms and working out the details of the system. Because the new law is not effective until July 1, 2003, refunds will
not be issued until after that date.

Please note the Kansas law that imposes the estate tax (pick-up tax) has not changed. The estate tax must be reported
and paid on time or penalties and interest will be imposed.

The changes made by HB2005 make it necessary for the Department of Revenue to redesign the forms used in
reporting the estate tax imposed on decedent’s estates. Until the new forms are available, please continue to use the
current forms for reporting the estate tax. When filing the return, simply ignore the portions that deal with the
succession tax.

The Department of Revenue will publish additional information concerning the repeal of the succession tax and the
continuing estate tax over the course of the next several weeks. Please look for up to date information on our web site.

To obtain additional copies of this or any other notice call the Kansas Department of Revenue’s voice mail forms
request line at (785) 296-4937 or download them from our web site: www.ksrevenue.org. If you have any questions
about this notice or Kansas estate tax, please contact our Estate Tax Unit.
Kansas Estate Tax
Kansas Department of Revenue
915 SW Harrison St.
Topeka, KS 66625-2222
In Topeka call: 368-8222
Outside Topeka call toll free: 1-877-526-7738
Fax: (785) 296-4993

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Date Composed: 05/14/2003 Date Modified: 05/14/2003

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