The proposed legislation, General Assembly Raised Bill No. 7177, seeks to amend the estate tax filing deadline by modifying the timeframes for tax payment based on the date of death of the decedent. 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 after the date of death. Conversely, for estates of decedents who die on or after July 1, 2009, and prior to July 1, 2025, the tax will be 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 and any associated penalties, but their liability is limited to the value of the property they received.

Additionally, the bill introduces a penalty for late payments, which will be ten percent of the unpaid amount or a minimum of fifty dollars, and interest will accrue at one percent per month from the due date until payment is made. 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 date of death of the decedent. The act is set to take effect on July 1, 2025, and aims to provide clarity and fairness in the estate tax filing process.