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KS Notice 99-08 Estate Tax 1999-06-23

What did House Bill 2549 do to the Kansas estate tax lien effective July 1, 1999?

Short answer: The Kansas Estate Tax Act applies to estates of decedents who died on or after July 1, 1998, and originally imposed a lien on the gross value of the estate (attaching to proceeds if property was sold) until the tax was paid. Effective July 1, 1999, House Bill 2549 repealed that lien and retroactively released all liens on estates of decedents who died on or after July 1, 1998, but before July 1, 1999 -- so there is no estate tax lien for any decedent dying on or after July 1, 1998. As a result, the Department of Revenue will no longer issue Release of Lien or Consent to Transfer forms for estate taxes. Title examiners or transfer agents who ask for those forms should be given a copy of this notice. The separate Kansas Inheritance Tax Act (decedents dying before July 1, 1998) and its lien are unaffected.

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This page answers the general question as of 1999. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1999
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice providing general public guidance, not a private ruling issued to one taxpayer. It describes 1999 law as it stood that year; later law and rates may change the result, so verify the current statute before relying on it. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

This notice explains how House Bill 2549 (1999) changed the Kansas estate tax lien.

  • The Kansas Estate Tax Act applies to estates of decedents dying on or after July 1, 1998 and had imposed a lien on the estate's gross value (attaching to proceeds if property sold) until the tax was paid. Release of the lien on real estate required a Release of Lien, and on securities a Consent to Transfer -- neither issued until an estate tax return was filed.
  • Effective July 1, 1999, HB 2549 repeals the estate tax lien and retroactively releases all liens on estates of decedents who died on or after July 1, 1998 but before July 1, 1999. So there is now no estate tax lien for any decedent dying on or after July 1, 1998.
  • Consequently, the Department no longer issues Release of Lien or Consent to Transfer forms for estate taxes. Title examiners or transfer agents requiring such a document should be given a copy of this notice.

The Kansas Inheritance Tax Act (for decedents dying before July 1, 1998) and its lien are not affected.

What this means for you

If you handle a Kansas estate for someone who died on or after July 1, 1998, there is no longer an estate tax lien to clear, and the Department will not issue Release of Lien or Consent to Transfer forms -- show a title examiner or transfer agent this notice if they ask for one. Estates of people who died before July 1, 1998 remain under the older inheritance tax lien rules.

Common questions

Q: Is there still a Kansas estate tax lien for deaths on or after July 1, 1998?
A: No. HB 2549 repealed the lien effective July 1, 1999 and released the liens retroactively, so no estate tax lien exists for decedents dying on or after July 1, 1998.

Q: Will the Department still issue a Release of Lien or Consent to Transfer for estate tax?
A: No. Because the lien was repealed, the Department no longer issues those forms for estate taxes; provide a copy of the notice if one is requested.

Citations and references

  • 1999 House Bill 2549 (amends Kansas Estate Tax Act; repeals estate tax lien)
  • Kansas Estate Tax Act (decedents dying on or after July 1, 1998)
  • Kansas Inheritance Tax Act (decedents dying before July 1, 1998)

Subject

Kansas Estate Tax Liens

Source

Original ruling text

Notice
Notice Number: 99-08
Tax Type: Estate Tax
Brief Description: Kansas Estate Tax Liens
Keywords:
Approval Date: 06/23/1999

Body:
NOTICE 99-08

                                                  Kansas Estate Tax Liens

The Kansas Estate Tax Act applies to the estate’s of decedents who died on or after July 1, 1998. The 1999 Kansas Legislature
enacted House Bill 2549, which amends several provisions of the Kansas Estate Tax Act. Some of these provisions affect the Kansas
estate tax lien. This notice provides information on how the Department of Revenue will implement these amendments.

The Kansas Inheritance Tax Act applies to the estate’s of decedents who died before July 1, 1998. The provisions of the Kansas
Inheritance Tax Act, and the lien for inheritance tax imposed under that act, are not affected by the enactment of 1999 House Bill
2549.

Estate Tax Lien Provisions In Effect From July 1, 1998, to July 1, 1999

The Kansas Estate Tax Act imposed a lien on the gross value of the estate until the tax was paid in full. If property has sold, the lien
attaches to the proceeds.

The lien imposed on real estate is released upon the Department of Revenue’s issuance of a Release of Lien. The lien imposed on
securities is released upon the Department’s issuance of a Consent to Transfer. Neither of these documents can be issued until an
estate tax return is filed.

Changes Effective July 1, 1999

Effective July 1, 1999, the lien imposed by the Kansas Estate Tax Act is repealed, and all liens imposed on the estates of decedents
who died on or after July 1, 1998, but prior to July 1, 1999, are released. As a result of the repeal and retroactive release of the estate
tax lien, there is no estate tax lien for the estate’s of decedents dying on or after July 1, 1998. As a consequence, effective July 1,
1999, the Department of Revenue will no longer issue either Release of Lien or Consent to Transfer forms for estate taxes.

Despite the Department of Revenue’s best efforts, notice of the repeal of the estate tax lien may not reach all title examiners and
transfer agents. If a title examiner requires a Release of Lien or a transfer agent requires a Consent to Transfer, please provide them
with a copy of this notice. If additional information is required, please contact the Estate Tax Section at (785) 296-2488 for
assistance.

Taxpayer Assistance

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.ink.org/public/kdor.

Date Composed: 06/23/1999 Date Modified: 10/09/2001

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