§2403. Rates of tax

NOTE: Repealed by Acts 2008, No. 822, §1, eff. Jan. 1, 2010.

A. The tax upon every inheritance, legacy, donation, or gift made in contemplation of death, to or in favor of a direct descendant by blood or affinity, ascendant, or surviving spouse of a decedent shall be computed as follows: no tax shall be collected or be due on the amount exempt by R.S. 2402(1); the tax shall be two percent of the fair market value thereof at the time of death on the next twenty thousand dollars, and three percent of such fair market value on any amount in excess of the sum of the exemption plus twenty thousand dollars.

B. The tax upon every inheritance, legacy, donation, or gift made in contemplation of death, to a collateral relation, including brothers or sisters by affinity and their descendants, shall be computed as follows. No tax shall be collected or be due on the first one thousand dollars; the tax shall be five percent of the fair market value thereof at the time of death on the next twenty thousand dollars, and seven percent of such fair market value on any amount in excess of twenty-one thousand dollars.

C. The tax upon every legacy or donation or gift made in contemplation of death to a stranger shall be computed as follows:

No tax shall be collected or be due on the first five hundred dollars; the tax shall be five percent of the fair market value thereof at the time of death on the next five thousand dollars, and ten percent of such fair market value on any amount in excess of five thousand five hundred dollars.

D. When an inheritance tax return is filed, the taxpayer may elect an alternate valuation date up to six months from the date of death as the date on which values shall be appraised for purposes of computing the inheritance tax. However, after the election of the valuation date is made, it cannot be revoked.

E. Notwithstanding any provision of this Section to the contrary, for deaths occurring after June 30, 1998, the tax rate as provided in this Section shall be as follows:

(1) For deaths occurring after June 30, 1998, and before July 1, 2001, the tax rates provided in this Section shall be reduced by eighteen percent.

(2) For deaths occurring after June 30, 2001, and before July 1, 2002, the tax rates provided in this Section shall be reduced by forty percent.

(3) For deaths occurring after June 30, 2002, and before July 1, 2003, the tax rates provided in this Section shall be reduced by sixty percent.

(4) For deaths occurring after June 30, 2003, the tax rates provided in this Section shall be reduced by eighty percent.

Amended by Acts 1958, No. 533, §1; Acts 1975, No. 457, §1; Acts 1982, No. 874, §1, eff. Jan. 1, 1984; Acts 1992, No. 1121, §1, eff. July 14, 1992; Acts 1997, No. 818, §1, eff. July 1, 1998; Acts 2008, No. 822, §1, eff. Jan. 1, 2010.