Bulletin Number
VTB 81-7
Tax Type
Estate Tax
Description
Estate Taxes; Code changes effective July 1, 1981
Topic
Reports
Date Issued
05-13-1981
DATE May 13, 1981
SUBJECT: Estate Taxes
The General Assembly of Virginia (1981 Session) enacted the following two (2) changes to the Code of Virginia.
(1) §53-238.2, subsection B, was amended to provide that the federal credit for Virginia estate tax purposes is the maximum amount allowable under § 2011 of the United States Internal Revenue Code rather than the credit allowed under § 2011 of the United States Internal Revenue Code. The effective date of this amendment is July 1981.
(2) § 53-233.38 was added to Chapter 6.1 of Title 53, Code of Virginia, as Article numbered 5, to impose a tax on the recapture value of estates containing farms or businesses which were previously valued on the basis of use under the Virginia Estate Tax Act. If the election of special use-value has been previously made under the Virginia Estate Tax Act and within fifteen (15) years after the death of the decedent and before the death of the qualified heir (1) any interest in such property is disposed of outside the family or (2) the property ceases to be used for qualified purposes, there would be a recapture of the tax savings that resulted from the special valuation. The effective date of this new section is July 1, 1981.
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