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, if not paid within the specified timeframes. It also allows the Commissioner of Revenue Services to extend the payment deadline for reasonable cause and outlines the process for handling overpayments, including interest rates applicable to such overpayments. The act is set to take effect on July 1, 2025, and aims to provide clarity and fairness in the estate tax process.