The proposed legislation, General Assembly Raised Bill No. 7177, aims to amend the estate tax filing deadline by extending it for certain decedents. Specifically, for estates of decedents who die prior to July 1, 2009, and on or after July 1, 2025, the estate tax will be due nine months from the date of death. Conversely, for estates of decedents dying on or after July 1, 2009, and prior to July 1, 2025, the tax will remain due six months after death. The bill also clarifies the liability of executors, administrators, and other parties involved in the estate, stating they are responsible for the tax until it is paid, but not exceeding the value of the property received.

Additionally, the bill introduces a penalty for unpaid taxes, which will be ten percent of the amount due or a minimum of fifty dollars, whichever is greater, and interest will accrue at one percent per month from the due date until payment. The Commissioner of Revenue Services is granted the authority to extend the payment deadline for reasonable cause and may require a tentative return. Furthermore, the bill outlines the process for handling overpayments, including the interest rates applicable based on the timing of the overpayment and the type of tax return filed. The act is set to take effect on July 1, 2025.