§ 105-32.2. Estate tax imposed in amount equal to federal state death tax credit. - North Carolina Statutes

§ 105‑32.2.  Estate taximposed in amount equal to federal state death tax credit.

(a)        Tax. – An estatetax is imposed on the estate of a decedent when a federal estate tax is imposedon the estate under section 2001 of the Code and any of the following apply:

(1)        The decedent was aresident of this State at death.

(2)        The decedent was nota resident of this State at death and owned any of the following:

a.         Real property ortangible personal property that is located in this State.

b.         Intangible personalproperty that has a tax situs in this State.

(b)        Amount. – Theamount of the estate tax imposed by this section is the amount of the statedeath tax credit that, as of December 31, 2001, would have been allowed undersection 2011 of the Code against the federal taxable estate. The tax may notexceed the amount of federal estate tax due under the Code. The federal taxableestate and the amount of the federal estate tax due are determined withouttaking into account the deduction for state death taxes allowed under Section2058 of the Code and the credits allowed under sections 2011 through 2015 ofthe Code.

If any property in the estateis located in a state other than North Carolina, the amount of tax payabledepends on whether the decedent was a resident of this State at death. If thedecedent was a resident of this State at death, the amount of tax due underthis section is reduced by an amount computed by multiplying the credit by afraction, the numerator of which is the gross value of the estate that has a taxsitus in another state and the denominator of which is the value of thedecedent's gross estate. If the decedent was not a resident of this State atdeath, the amount of tax due under this section is an amount computed bymultiplying the credit by a fraction, the numerator of which is the gross valueof real property that is located in North Carolina plus the gross value of anypersonal property that has a tax situs in North Carolina and the denominator ofwhich is the value of the decedent's gross estate. For purposes of thissection, the gross value of property is its gross value as finally determinedin the federal estate tax proceedings.  (1998‑212, s. 29A.2(b); 2002‑87, s. 9;2002‑126, ss. 30C.3(a), 30C.3(b); 2003‑284, ss. 37A.4, 37A.5; 2003‑416,s. 1; 2004‑170, ss. 1, 4(a), (b); 2005‑144, ss. 8.1, 8.2; 2006‑162,s. 26; 2008‑107, s. 28.17(a).)