CHAPTER 228c
GIFT TAX

Table of Contents

Sec. 12-642. Rate of tax.
Sec. 12-643. Definition of taxable gifts and Connecticut taxable gifts.

      Sec. 12-642. Rate of tax. (a)(1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

Amount of Taxable Gifts Rate of Tax
Not over $25,0001%
Over $25,000
    but not over $50,000
$250, plus 2% of the excess
    over $25,000
Over $50,000
    but not over $75,000
$750, plus 3% of the excess
    over $50,000
Over $75,000
    but not over $100,000
$1,500, plus 4% of the excess
    over $75,000
Over $100,000
    but not over $200,000
$2,500, plus 5% of the excess
    over $100,000
Over $200,000
 
$7,500, plus 6% of the excess
    over $200,000

      (2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640 for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

Amount of Taxable Gifts Rate of Tax
Over $25,000
    but not over $50,000
$250, plus 2% of the excess
    over $25,000
Over $50,000
    but not over $75,000
$750, plus 3% of the excess
    over $50,000
Over $75,000
    but not over $100,000
$1,500, plus 4% of the excess
    over $75,000
Over $100,000
    but not over $675,000
$2,500, plus 5% of the excess
    over $100,000
Over $675,000
 
$31,250, plus 6% of the excess
    over $675,000

      (3) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2005, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

Amount of Taxable Gifts Rate of Tax
Not over $2,000,000None
Over $2,000,000
    but not over $2,100,000
5.085% of the excess over $0
 
Over $2,100,000
    but not over $2,600,000
$106,800 plus 8% of the excess
    over $2,100,000
Over $2,600,000
    but not over $3,100,000
$146,800 plus 8.8% of the excess
    over $2,600,000
Over $3,100,000
    but not over $3,600,000
$190,800 plus 9.6% of the excess
    over $3,100,000
Over $3,600,000
    but not over $4,100,000
$238,800 plus 10.4% of the excess
    over $3,600,000
Over $4,100,000
    but not over $5,100,000
$290,800 plus 11.2% of the excess
    over $4,100,000
Over $5,100,000
    but not over $6,100,000
$402,800 plus 12% of the excess
    over $5,100,000
Over $6,100,000
    but not over $7,100,000
$522,800 plus 12.8% of the excess
    over $6,100,000
Over $7,100,000
    but not over $8,100,000
$650,800 plus 13.6% of the excess
    over $7,100,000
Over $8,100,000
    but not over $9,100,000
$786,800 plus 14.4% of the excess
    over $8,100,000
Over $9,100,000
    but not over $10,100,000
$930,800 plus 15.2% of the excess
    over $9,100,000
Over $10,100,000
 
$1,082,800 plus 16% of the excess
    over $10,100,000

      (b) The tax imposed by section 12-640 shall be paid by the donor. If the gift tax is not paid when due the donee of any gift shall be personally liable for the tax to the extent of the value of the gift.

      (June Sp. Sess. P.A. 91-3, S. 138, 168; P.A. 00-170, S. 8, 42; May 9 Sp. Sess. P.A. 02-1, S. 76; June 30 Sp. Sess. P.A. 03-1, S. 99; P.A. 05-251, S. 67.)

      History: June Sp. Sess. P.A. 91-3, S. 138 effective August 22, 1991, and applicable to gifts made on or after September 1, 1991; P.A. 00-170 amended Subsec. (a) to modify the rate structure and to provide for a phase-out of the tax on gifts under $1,000,000, which phase-out will be complete after January 1, 2006, effective May 26, 2000; May 9 Sp. Sess. P.A. 02-1 amended Subsec. (a) to delay by two years the phase-out of the tax on gifts under $1,000,000, effective July 1, 2002, and applicable to income years commencing on or after January 1, 2002; June 30 Sp. Sess. P.A. 03-1 amended Subsec. (a) to extend by two years the phaseout of the tax on gifts under one million dollars, effective August 16, 2003, and applicable to taxable years commencing on or after January 1, 2003; P.A. 05-251 amended Subsec. (a) by replacing rate structure in former Subdivs. (3) to (7) with rate structure in new Subdiv. (3), effective June 30, 2005, and applicable to calendar years commencing on or after January 1, 2005.

      See Sec. 12-391 re estate tax.

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      Sec. 12-643. Definition of taxable gifts and Connecticut taxable gifts. (a) The term "taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, less the deductions allowed in Sections 2522 to 2524, inclusive, of said Internal Revenue Code, except in the event of repeal of the federal gift tax, than all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.

      (b) In the administration of the tax under this chapter, the Commissioner of Revenue Services shall apply the provisions of Sections 2701 to 2704, inclusive, of said Internal Revenue Code. The words "secretary or his delegate" as used in the aforementioned sections of the Internal Revenue Code means the Commissioner of Revenue Services.

      (c) The term "Connecticut taxable gifts" means taxable gifts made during a calendar year commencing on or after January 1, 2005, that are, (1) for residents of this state, taxable gifts, wherever located, but excepting gifts of real estate or tangible personal property located outside this state, and (2) for nonresidents of this state, gifts of real estate or tangible personal property located within this state.

      (June Sp. Sess. P.A. 91-3, S. 139, 168; P.A. 97-243, S. 41, 67; P.A. 05-251, S. 68.)

      History: June Sp. Sess. P.A. 91-3, S. 139 effective August 22, 1991, and applicable to gifts made on or after September 1, 1991; P.A. 97-243 clarified that the commissioner is to apply Secs. 2701 to 2704 of the Internal Revenue Code, effective June 24, 1997, and applicable to calendar years commencing on or after January 1, 1997; P.A. 05-251 divided section into Subsecs. (a) and (b), amended Subsec. (a) by adding provision re repeal of federal gift tax and added Subsec. (c) re definition of "Connecticut taxable gifts", effective June 30, 2005, and applicable to calendar years commencing on or after January 1, 2005.

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