§ 7402. Definitions

As used in this chapter unless the context requires otherwise:

(1) “Commissioner” means the Commissioner of Taxes appointed under 3 V.S.A. § 2251.

(2) “Executor” means the executor or administrator of the estate of the decedent or, if there is no executor or administrator appointed, qualified, and acting within Vermont, then any person in actual or constructive possession of any property of the decedent.

(3) “Federal estate tax liability” means for any decedent’s estate the federal estate tax payable by the estate under the laws of the United States after the allowance of all credits against the estate tax provided by the laws of the United States.

(4) [Repealed.]

(5) “Federal gross estate” means the gross estate as determined under the laws of the United States.

(6) “Federal taxable estate” means the taxable estate as determined under the laws of the United States.

(7) “Federal taxable gifts” means taxable gifts as determined under the laws of the United States.

(8) “Laws of the United States” means the U.S. Internal Revenue Code of 1986, as amended through December 31, 2022. As used in this chapter, “Internal Revenue Code” has the same meaning as “laws of the United States” as defined in this subdivision. The date through which amendments to the U.S. Internal Revenue Code of 1986 are adopted under this subdivision shall continue in effect until amended, repealed, or replaced by act of the General Assembly.

(9) “Nonresident of Vermont” means a person whose domicile is not Vermont.

(10) “Resident of Vermont” means a person whose domicile is Vermont.

(11) “Taxpayer” means the executor of an estate, the estate itself, the donor of a gift, or any person or entity or combination of these who is liable for the payment of any tax, interest, penalty, fee, or other amount under this chapter.

(12) [Repealed.]

(13) “Vermont gross estate” means for any decedent the value of the federal gross estate as provided under 26 U.S.C. § 2031, excluding the value of property that has its situs outside Vermont.

(14) “Vermont taxable estate” means the federal taxable estate as provided under 26 U.S.C. § 2051, without regard to whether the estate is subject to the federal estate tax:

(A) Increased by the amount of the deduction for state death taxes allowed under 26 U.S.C. § 2058, to the extent deducted in computing the federal taxable estate.

(B) Increased by the amount of the deduction for foreign death taxes allowed under 26 U.S.C. § 2053(d), to the extent deducted in computing the federal taxable estate.

(C) Increased by the aggregate amount of taxable gifts as defined in 26 U.S.C. § 2503, made by the decedent within two years of the date of death. For purposes of this subdivision, the amount of the addition equals the value of the gift under 26 U.S.C. § 2512 and excludes any value of the gift included in the federal gross estate.

(15) “Situs of property” means, with respect to:

(A) real property, the state or country in which it is located;

(B) tangible personal property, the state or country in which it was normally kept or located at the time of the decedent’s death or for a gift of tangible personal property within two years of death, the state or country in which it was normally kept or located when the gift was executed;

(C) a qualified work of art, as defined in 26 U.S.C. § 2503(g)(2), owned by a nonresident decedent and that is normally kept or located in this State because it is on loan to an organization, qualifying as exempt from taxation under 26 U.S.C. § 501(c)(3), that is located in Vermont, the situs of the art is deemed to be outside Vermont; and

(D) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within two years of death, the state or country in which the decedent was domiciled when the gift was executed. (Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2001, No. 140 (Adj. Sess.), § 13, eff. June 21, 2002; 2015, No. 146 (Adj. Sess.), § 1, eff. Jan. 1, 2016; 2017, No. 113 (Adj. Sess.), § 188; 2019, No. 51, § 6, eff. Jan. 1, 2019; 2019, No. 175 (Adj. Sess.), § 14, eff. Jan. 1, 2020; 2021, No. 9, § 23a, eff. Jan. 1, 2021; 2021, No. 73, § 24, eff. Jan. 1, 2021; 2021, No. 105 (Adj. Sess.), § 557, eff. July 1, 2022; 2021, No. 148 (Adj. Sess.), § 8, eff. January 1, 2022; 2023, No. 72, § 2, eff. January 1, 2023.)