The Vermont Statutes Online

Title 32 : Taxation and Finance

Chapter 190 : Estate and Gift Taxes

Subchapter 003 : Estate Tax

• § 7460. Generation-skipping transfers

  (a) As used in this section, unless the context indicates otherwise:

  (1) “Generation-skipping transfer” means every transfer subject to the federal generation-skipping transfer tax in which the original transferor is a resident of the State at the date of original transfer or the property transferred is real or personal property in the State.

  (2) “Original transferor” means any grantor, donor, settlor, or testator who by grant, gift, trust, or will makes a transfer of real or personal property that results in federal generation-skipping transfer tax.

  (b) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is a resident of the State at the date of original transfer, in an amount equal to the amount allowable as a credit for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.

  (c) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is not a resident of the State at the date of the original transfer, in an amount equal to the amount allowable as a credit, with regard to the real or tangible personal property in Vermont, for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.

  (d) Every person required to file a return reporting a generation-skipping transfer under applicable federal law and regulations shall file with the Commissioner, on or before the last day prescribed for filing the federal return, a return in such form as the Commissioner may prescribe, including a duplicate copy of the federal return.

  (e) The person liable for payment of the federal generation-skipping transfer tax shall be liable for the tax imposed by this section, which tax is due upon a taxable distribution or taxable termination as determined under the applicable provisions of the federal generation-skipping transfer tax and shall be paid to the Commissioner.

  (f) Any person failing to file any payment of tax required by this section when due shall be subject to the interest and penalty provision of section 3202 of this title.

  (g) If, after a duplicate copy of the federal return of a generation-skipping transfer has been filed with the Commissioner, the amount of the federal generation-skipping transfer tax is increased or decreased by the federal government, an amended return shall be filed with the Commissioner showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax and in the State death tax credit relating thereto. (Added 1999, No. 49, § 57, eff. June 2, 1999; amended 2001, No. 140 (Adj. Sess.), § 16, eff. June 21, 2002; 2021, No. 105 (Adj. Sess.), § 559, eff. July 1, 2022.)