Virginia Code 58.1-936: Imposition of tax.
A. A tax is hereby imposed upon every generation skipping transfer, where the original transferor is a resident of the Commonwealth of Virginia at the date of original transfer, in an amount equal to the amount allowable as credit for state legacy taxes under § 2604 of the Internal Revenue Code, to the extent such credit exceeds the aggregate amount of all taxes on the same transfer actually paid to the several states of the United States, other than the Commonwealth of Virginia.
Terms Used In Virginia Code 58.1-936
- Federal generation skipping transfer tax: means the tax imposed by Chapter 13 of subchapter A of the Internal Revenue Code of 1954, as amended. See Virginia Code 58.1-935
- Generation skipping transfer: includes every transfer subject to the tax imposed under Chapter 13 of subchapter A of the Internal Revenue Code of 1954, as amended, where the original transferor is a resident of the Commonwealth of Virginia at the date of original transfer, or the property transferred is real or personal property having a situs in Virginia. See Virginia Code 58.1-935
- Includes: means includes, but not limited to. See Virginia Code 1-218
- Legacy: A gift of property made by will.
- Original transferor: means any grantor, donor, trustor, or testator who by grant, gift, trust or will makes a transfer of real or personal property that results in a federal generation skipping transfer tax under applicable provisions of the Internal Revenue Code. See Virginia Code 58.1-935
- Personal property: All property that is not real property.
- Resident: means a decedent who was domiciled in the Commonwealth of Virginia at his death. See Virginia Code 58.1-901
- State: means any state, territory or possession of the United States and the District of Columbia. See Virginia Code 58.1-901
- United States: includes the 50 states, the District of Columbia the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands and the United States Virgin Islands. See Virginia Code 1-255
- Value: means "value" as finally determined for federal estate tax purposes under the laws of the United States relating to federal estate taxes. See Virginia Code 58.1-901
B. A tax is hereby imposed upon every generation skipping transfer where the original transferor is not a resident of Virginia at the date of the original transfer, but where the generation skipping transfer includes real or personal property having a situs in Virginia, in an amount equal to the amount allowable as a credit for state legacy taxes under § 2604 of the Internal Revenue Code, reduced by an amount which bears the same ratio to the total state tax credit allowable for federal generation skipping transfer tax purposes as the value of the transferred property taxable by all other states bears to the value of the gross generation skipping transfer for federal generation skipping transfer tax purposes. In any case in which a tax is imposed on a generation skipping transfer by Virginia and by one or more other states or the District of Columbia, the Commissioner shall negotiate with the taxing authorities of such other state, states, or District of Columbia so that the aggregate amount of taxes imposed by Virginia and such other state, states or the District of Columbia on a generation skipping transfer does not exceed 100 percent of the amount allowable as credit for state legacy taxes under § 2604 of the Internal Revenue Code.
Code 1950, § 58-238.37; 1979, c. 559; 1984, c. 675; 1987, c. 484.