§236E-17 Generation-skipping transfers; tax imposed. (a) A Hawaii generation-skipping transfer tax is imposed on every taxable transfer involving:

(1) Transferred property located in the State; and

(2) Transferred property from a resident trust.

(b) The tax shall be the applicable generation-skipping transfer tax rate multiplied by the taxable amount as determined under chapter 13 of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the taxable transfer subject to the tax under subsection (a) and the denominator of which is the total amount of taxable transfers subject to the federal generation-skipping transfer tax.

(c) The person required to report and pay the federal generation-skipping transfer tax, or, if no federal generation-skipping transfer tax is due, the person who would be required to report and pay the federal generation-skipping transfer tax if any were due, shall file with the department the following:

(1) A report for the generation-skipping transfer tax due under this section; and

(2) A true copy of the federal generation-skipping transfer tax return, if any is due.

The information required under this subsection shall be filed with the department on or before the date prescribed in section 2662 of the Internal Revenue Code and the regulations promulgated thereunder.

(d) If a federal transfer tax is due and the person required to file the return has obtained an extension of time for filing the federal return, the filing required by subsection (c) shall be extended similarly until the end of the time period granted in the extension of time for the federal return. A true copy of the extension shall be filed with the department along with the report required under subsection (c).

If a federal transfer tax is not due, the director of taxation may grant a reasonable extension of time for filing returns under rules as the department shall prescribe.

(e) If a taxable transfer subject to the Hawaii generation-skipping transfer tax is subject to a generation-skipping transfer tax imposed by another state and if the tax imposed by the other state is not qualified by a reciprocal provision allowing the property to be taxed in this State, the amount of the tax due under this section shall be credited with the lesser of:

(1) The amount of the generation-skipping transfer tax actually paid the other state; or

(2) An amount computed by multiplying the Hawaii generation-skipping transfer tax by a fraction, the numerator of which is the taxable transfer subject to the generation-skipping transfer tax imposed by the other state, and the denominator of which is the total amount of the taxable transfers subject to the federal generation-skipping transfer tax.

(f) For the purposes of this section, the term "trust" includes a trust as defined in section 2652(b)(1) of the Internal Revenue Code. [L 2012, c 220, pt of §1; am L 2018, c 27, §12]

Note

The 2018 amendment applies to decedents dying or taxable transfers occurring after December 31, 2017. L 2018, c 27, §15(2).