When did Kansas's former pick-up and stand-alone estate taxes finally sunset?

Plain-English summary

Kansas's two former estate taxes continued to matter for pre-2010 deaths, but each had a final return-filing sunset. The pick-up tax covered decedents dying after June 30, 1998 and before January 1, 2007. If no return was filed before January 1, 2017, no pick-up-tax liability accrued to the estate or distributees, subject to matters then pending with the Department.

The stand-alone estate tax covered decedents dying after December 31, 2006 and before January 1, 2010. If no return was filed before January 1, 2020, no stand-alone-tax liability accrued to the estate or distributees. The notice says the statute of limitations did not begin until a return was filed, which is why the sunset legislation was needed.

For deaths after December 31, 2009, Kansas had enacted no applicable estate tax, so no Kansas estate tax was due and the Department would not process a return.

What this means for you

Determine the decedent's date of death, which former tax applied, and whether a return was filed before the corresponding 2017 or 2020 cutoff. This notice describes historical taxes whose stated sunset dates have passed.

Common questions

Q: Which deaths were covered by the pick-up tax?
A: Deaths after June 30, 1998 and before January 1, 2007.

Q: Which deaths were covered by the stand-alone tax?
A: Deaths after December 31, 2006 and before January 1, 2010.

Citations and references

• K.S.A. 79-15,100 through 79-15,125
• K.S.A. 79-15,127 through 79-15,145
• K.S.A. 79-15,201 through 79-15,253
• 2010 House Bill 2557

Subject

Sunset of Kansas Pick-Up and Stand-Alone Estate Taxes

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 10-08

Original ruling text

Mark Parkinson, Governor
Joan Wagnon, Secretary

                                                  www.ksrevenue.org

                                       NOTICE 10-08

                         SUNSET OF THE KANSAS ESTATE TAX
                   “PICK-UP” TAX AND “STAND ALONE” ESTATE TAX

  There are two Kansas estate tax acts applicable to the estates of decedents dying prior

to January 1, 2010; the “pick-up” tax and the “stand-alone” estate tax. While both of these
acts have been repealed they continue to apply, based on the decedent’s date of death. Both
of these acts are now subject to “sunset” provisions which will cause these taxes to end in
2017 and 2020, respectively.

 The “Pick-Up” Tax

  For many years, Kansas had an inheritance tax. In 1998 the inheritance tax was replaced

with an estate tax that applied to the estates of decedents dying on or after July 1, 1998. The tax
imposed under this act was in an amount equal to the federal credit for state death taxes and,
because the amount of the federal credit was “picked up” by Kansas, this estate tax was referred
to as a “pick-up” tax. The provisions of this estate tax are found in K.S.A. 79-15,100 through
79-15,125 and K.S.A. 79-15,127 through 79-15,145.

  In 2006 the “pick-up” tax was replaced with a “stand-alone” estate tax that applies to the

estates of decedents dying on or after January 1, 2007. When the “stand-alone” estate tax was
enacted, however, it contained a provision, K.S.A. 79-15,251, which specifically provided for the
continuation of the “pick-up” tax. Because of this provision, and because the statute of
limitations for the “pick-up” tax does not begin to run until an estate tax return is filed, the “pick-
up” tax continues to apply to estates of persons who died before January 1, 2007.

 In 2010 the Kansas legislature enacted legislation which includes language that ends the

“pick-up” tax on January 1, 2017. New Section 1 of HB2557 provides:

       New Section 1. The provisions of K.S.A. 79-15,100 through 79-15,125 and
 K.S.A. 79-15,127 through 79-15,145, and amendments thereto, applicable to the
 estates of all decedents dying after June 30, 1998 and before January 1, 2007, shall
 only apply to estates for which an estate tax return was filed before January 1, 2017.
 In the event no estate tax return has been filed with the director before January 1,
 2017, no liability which may have been imposed if the return was filed by such date
 shall accrue to either the estate or the distributees of the estate.

  As noted in New Section 1 of HB2557, if an estate tax return has not been filed by January

1, 2017 for the estate of a decedent dying before January 1, 2007, neither the estate nor any
distributee of the estate is liable for the “pick-up” tax. In addition, under the “pick-up” tax there
OFFICE OF POLICY AND RESEARCH
DOCKING STATE OFFICE BUILDING, 915 SW HARRISON ST., TOPEKA, KS 66612-1588
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is no lien for any property considered to be an asset of the decedent’s estate. As a result, with the
exception of matters then pending before the Department of Revenue, the “pick-up” tax will end
as of January 1, 2017.

 The “Stand-Alone” Estate Tax

  In 2006 the “pick-up” tax was replaced with a “stand-alone” estate tax that applied to the

estates of decedents dying on or after January 1, 2007. Because it was not dependant upon
federal law as a starting point for computing the Kansas tax, this estate tax was referred to as a
“stand-alone” estate tax. The provisions of this estate tax are found in K.S.A. 79-15,201 through
79-15,253.

 When the “stand-alone” estate tax was enacted, it contained a provision, K.S.A. 79-15,251,

which specifically provides that it apply only to the estates of decedent dying after December 31,
2006 and before January 1, 1010. In addition, in K.S.A. 79-15,253 it provides that:

      On January 1, 2010 the provisions of K.S.A. 2006 Supp. 79-15,201 through 79-
 15,253, and K.S.A. 2009 Supp. 79-15,206a, and amendments thereto, are hereby
 repealed.

  Because the statute of limitations for the “stand-alone” estate tax does not begin to run until

an estate tax return is filed the “stand-alone” tax continues to apply to estates of persons who
died on or after January 1, 2007 but before January 1, 2010.

 In 2010 the Kansas legislature enacted legislation which includes language that ends the

“stand-alone” tax on January 1, 2020. New Section 12 of HB2557 provides:

       New Sec. 2. The provisions of K.S.A. 79-15,201 through 79-15,253, and
 amendments thereto, applicable to the estates of all decedents dying after December
 31, 2006 and before January 1, 2010, shall only apply to estates for which an estate
 tax return was filed before January 1, 2020. In the event no estate tax return has been
 filed with the director before January 1, 2020, no liability which may have been
 imposed if the return was filed by such date shall accrue to either the estate or the
 distributees of the estate.

  As noted in New Section 2 of HB2557, if an estate tax return has not been filed by January

1, 2020 for the estate of a decedent dying before January 1, 2010, neither the estate nor any
distributee of the estate is liable for the “stand-alone” tax. In addition, the running of the statute
of limitation serves to release the state’s lien from any property considered to be an asset of the
decedent’s estate. As a result, with the exception of matters then pending before the Department
of Revenue, the “stand-alone” estate tax will end as of January 1, 2020.

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 Estates of Decedents Dying On or After January 1, 2010

  The Kansas Legislature has not enacted any estate tax provisions which apply to the estates

of decedents dying after December 31, 2009. As a result, no tax is or will be due from these
estates. Because no Kansas estate tax law applies to these estates the Department of Revenue
will not process estate tax returns filed for them.

 For additional information in this regard, please see Notice 10-07.


                                 Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about income tax, please contact:

                             Taxpayer Assistance Center
                            Kansas Department of Revenue
                            915 SW Harrison St., 1st Floor
                              Topeka, KS 66612-1588
                                Phone: 785-368-8222
                                 Fax: 785-291-3614




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