- Alaska began phasing out its estate tax in 2005.tax time image by Tom Oliveira from Fotolia.com
Alaska's estate taxes were tied to the federal tax credit that was phased out in 2005. The state now requires state returns to be filed only for estates belonging to people who died before January 1, 2005 if the estate had a federal filing requirement. The following estate tax regulations apply to estates that fall under those categories.
What Estates are Taxed
- The state estate tax applied to residents and non-residents who had property in the state. It was levied on any property located in the state that is transferred after the owner had died. Taxable property included businesses located in the state, stocks, bonds, debentures (a form of IOU), notes and other securities or obligations of corporations organized under the laws of the state, according to the law.
- The state computed the tax rate using a formula based on the now-defunct federal tax credit. It also took into consideration what taxes would be due to other states for properties owned there.
Notice and Due Date
- The executor was required to send a written notice of the death to the state department of revenue within two months of the death or the time that the executor was appointed. The tax was due 15 months after the death, although the due date could be extended in some circumstances for up to a year.
- Estates were exempt from the state estate tax if the transferrer at the time of death was a resident of a state, U.S. territory or district that did not impose any kind of death tax to Alaska residents. The exception is for tangible personal property that was actually located in that state or territory, or if the state, territory or district had a reciprocal exemption for nonresidents.