MASSACHUSETTS ESTATE TAX

M.G.L. pt. Part I, tit. Title IX, ch. c. 65C

in effect

M.G.L. c. 65C, § 1 Definitions

c. 65C, § 1. Definitions Section 1. When used in this chapter the following words or terms shall have, unless the context clearly indicated otherwise, the following meanings:— (a) ''Code'', the Internal Revenue Code of the United States, as amended and in effect on January first, nineteen hundred and seventy-five. (b) ''Commissioner'', the commissioner of revenue. [There is no subsection (c).] (d) ''Federal gross estate'', the gross estate as defined under the Code except that, (1) notwithstanding section two thousand and thirty-five of the Code, the value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has at any time made a transfer, relinquished a power, or exercised or released a general power of appointment, except in case of a bona fide sale for an adequate and full consideration in money or money's worth, by trust or otherwise, during the three year period ending with the date of the decedent's death; provided, however, that the value of such property or interest therein so transferred or subject to the power so relinquished, exercised or released exceeds ten thousand dollars for any person during a calendar year; and (2) notwithstanding section two thousand and forty of the Code, one-half of the value of any interest in any property shall be included in the gross estate if such interest is held by the decedent and the decedent's spouse as tenants by the entirety, or joint tenants with right of survivorship, but only if the decedent and the spouse of the decedent are the only joint tenants. (e) ''Massachusetts adjusted gross estate'', the Massachusetts gross estate less the deductions allowable under section three pursuant to sections two thousand and fifty-three and two thousand and fifty-four of the Code. (f) ''Massachusetts gross estate'', the federal gross estate, whether or not a federal estate tax return is required to be filed, plus the value of any property (i) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section three A, or to the extent of any such interest therein of which the decedent has at any time made a transfer, by trust or otherwise, under any circumstances which would require the property to be included in the gross estate under the provisions of this chapter and (ii) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and less the value of real and tangible personal property having an actual situs outside the commonwealth. The Massachusetts gross estate shall not include the value of any property in which the decedent had a qualifying income interest for life which is not otherwise includible in the Massachusetts gross estate under the first sentence of this paragraph, notwithstanding the right of the executor of the decedent's estate to recover federal or Massachusetts estate taxes from such property. (g) ''Massachusetts net estate'', the Massachusetts gross estate less the following deductions to the extent they are allowable under section three: (1) funeral expenses; (2) claims against the estate; and (3) unpaid mortgages on, or any indebtedness in respect of, property where the value of the decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the Massachusetts gross estate. (h) ''Massachusetts taxable estate'', the Massachusetts gross estate less the exemption and deductions allowable under section three. (i) ''Resident'', any person domiciled in the commonwealth.

M.G.L. c. 65C, § 2 Computation of estate tax

c. 65C, § 2. Computation of estate tax Section 2. (a) A tax computed in accordance with the following table less the credit, if any, provided in subsection (a) of section three, is hereby imposed on the transfer of the Massachusetts taxable estate of every deceased resident of Massachusetts:— ; provided, however, that the tax under this subsection shall not be greater than twenty per cent of the amount by which the Massachusetts net estate exceeds the exemption given at subsection (a) of section three. (b) If the maximum credit for state death taxes allowable to the estate of a deceased resident or nonresident against the federal estate tax, computed according to the rate schedule found in section two thousand and eleven of the Code based upon an amount equal to the Massachusetts taxable estate, computed, with respect to a nonresident, as if the decedent had been a resident and apportioned in accordance with subsection (b) of section four, exceeds the tax imposed under subsection (a), the amount of such excess shall be added to the tax imposed under said subsection (a). In the case of a decedent who was a nonresident of the United States, however, the Massachusetts taxable estate shall be computed as if such decedent had been a resident without apportionment in accordance with subsection (b) of section four. For purposes of this subsection, the Massachusetts taxable estate shall include the value of any property subject to a power of appointment to the extent that such value has been excluded from the computation in said subsection (a) because a tax had been paid thereon pursuant to section fourteen of chapter sixty-five and shall also include the value of qualified terminable interest property, as defined in subsection (b)(7)(B) of section two thousand and fifty-six of the Internal Revenue Code in effect on January first, nineteen hundred and eighty-five, to the extent that such property has been included in the gross estate of the decedent as finally determined for federal estate tax purposes but has not been included in the gross estate of the decedent for Massachusetts estate tax purposes, in each case less the deductions described in subsection (b) of section three attributable thereto and the value of real and tangible personal property includible therein and having an actual situs outside the commonwealth. (c) The provisions of this section shall apply to decedents dying on or before December thirty-first nineteen hundred and ninety-six.

M.G.L. c. 65C, § 2A Transfer of estate and real property; tax

c. 65C, § 2A. Transfer of estate and real property; tax [ Subsections (a) and (b) effective until August 1, 2025. For text effective August 1, 2025, see below.] Section 2A. (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or after January 1, 1997 who, at the time of death, was a resident of the commonwealth. The amount of the tax shall be equal to the credit for state death taxes that would have been allowable to a decedent's estate as computed under section 2011 of the Code, as in effect on December 31, 2000, hereinafter referred to as the "credit''. If the federal gross estate of a person includes real or tangible personal property located outside of the commonwealth at the time of death, the credit shall be determined based on the value of the federal taxable estate after such estate is reduced by the value of such real or tangible personal property located outside of the commonwealth. (b) A tax is hereby imposed upon the transfer of real property situated in this Commonwealth and upon tangible personal property having an actual situs in this Commonwealth of every person who at the time of his death was not a resident of this Commonwealth. The amount of this tax is a sum equal to the proportion of the credit which the value of Massachusetts real and tangible personal property taxed in this Commonwealth which qualifies for such credit bears to the value of the decedent's total federal gross estate. [ Subsections (a) and (b) as amended by 2025, 9, Sec. 35 effective August 1, 2025. See 2025, 9, Sec. 136. For text effective until August 1, 2025, see above.] (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or after January 1, 1997 who, at the time of death, was a resident of the commonwealth. The amount of the tax shall be equal to the credit for state death taxes that would have been allowable to a decedent's estate as computed under section 2011 of the Code, as in effect on December 31, 2000, hereinafter referred to as the "credit''. The credit shall be determined based on the value of the federal gross estate after such estate is increased by the value of any property: (i) not included in the federal gross estate; (ii) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (iii) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (iv) which is not real or tangible personal property located outside of the commonwealth at the time of death. If the federal gross estate of a person includes real or tangible personal property located outside of the commonwealth at the time of death, the credit shall be determined based on the value of the federal gross estate after such estate is reduced by the value of such real or tangible personal property located outside of the commonwealth and increased by the value of any property: (i) not included in the federal gross estate; (ii) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (iii) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (iv) that is not real or tangible personal property located outside of the commonwealth at the time of death; provided, however, that for the purposes of calculating the federal taxable estate, no deduction shall be allowed that is attributable to such real or tangible personal property located outside of the commonwealth. (b) A tax is hereby imposed upon the transfer of real property situated in this commonwealth and upon tangible personal property having an actual situs in this commonwealth of every person who at the time of their death was not a resident of this commonwealth. The amount of this tax is the amount of the credit calculated based upon a federal gross estate that is equal to the sum of: (i) the value of the estate's real or tangible personal property located in the commonwealth; and (ii) the value of any real or tangible property: (A) not included in the federal gross estate; (B) in which the decedent had at death a qualifying income interest for life described in subsection (c) of section 3A; (C) for which a deduction was allowed for Massachusetts estate tax purposes with respect to the transfer of such property to the decedent; and (D) which is not located outside of the commonwealth at the time of death. Under this subsection, for the purposes of calculating the federal taxable estate, no deduction shall be allowed that is attributable to property other than such real or tangible personal property located in the commonwealth. (c) Notwithstanding any other provision of law, the tax imposed by subsections (a) and (b) shall be computed upon the value of any property subject to a power of appointment which is includible in the federal gross estate, notwithstanding that a tax has been paid thereon pursuant to section fourteen of chapter sixty-five. (d) For the purposes of computing the tax imposed by subsections (a) and (b), the provisions of section three shall not apply. (e) For the estate of decedents dying on or after January 1, 2003, all references and provisions in this chapter to the Internal Revenue Code or Code, unless the context clearly indicates otherwise, shall be to the Code as in effect on December 31, 2000. [ Subsections (f) and (g) effective for the estates of decedents dying on or after January 1, 2023. See 2023, 50 Sec. 48.] (f) For the estates of decedents dying on or after January 1, 2023, a credit shall be allowed against the tax imposed by subsections (a) and (b) equal to the amount of such tax; provided, however, that the credit shall not exceed $99,600. (g) The estates of decedents dying on or after January 1, 2023 shall not be required to pay any tax under subsections (a) and (b) if the value of the federal taxable estate is not more than $2,000,000.

M.G.L. c. 65C, § 3 Exemption and deductions

c. 65C, § 3. Exemption and deductions Section 3. (a) An exemption equal to the Massachusetts net estate shall be allowed if the Massachusetts net estate is three hundred thousand dollars or less for decedents dying after December thirty-first, nineteen hundred and ninety-two and on or before December thirty-first, nineteen hundred and ninety-three; four hundred thousand dollars or less for decedents dying after December thirty-first, nineteen hundred and ninety-three and on or before December thirty-first, nineteen hundred and ninety-four; five hundred thousand dollars or less for decedents dying after December thirty-first, nineteen hundred and ninety-four and on or before December thirty-first, nineteen hundred and ninety-five; and six hundred thousand dollars or less for decedents dying after December thirty-first, nineteen hundred and ninety-five and on or before December thirty-first, nineteen hundred and ninety-six; provided, that the exemption shall not exceed an amount equal to the smallest federal taxable estate that absorbs the allowable federal credit under section two thousand and ten of the Internal Revenue Code as amended and in effect as of the date of death of the decedent. Except for purposes of the final clause of subsection (a) of section two of chapter sixty-five C, if the Massachusetts net estate exceeds the amount of the exemption, no exemption shall apply. (b) In addition to the exemption provided in subsection (a), the deductions allowable in computing the Massachusetts taxable estate shall consist of the deduction or portions thereof, other than the exemption found in section two thousand and fifty-two of the Code, which are allowable in determining the federal taxable estate and which are attributable to property included in the Massachusetts gross estate; provided, however, that the deduction for property which has passed or passes to a surviving spouse shall not be limited by subsection (c) of section two thousand and fifty-six of the Code. No deduction for interest shall be allowed hereunder unless the same has been paid or has, solely through the passage of time, accrued within three years from the due date of the return, without regard to any extension granted. (c) Notwithstanding the provisions of subsection (b) or any general or special law to the contrary, if a deduction from any federal estate tax would not be allowed because of a failure to meet the requirements set forth pursuant to section two thousand and fifty-five of the Code in effect on January first, nineteen hundred and eighty-five, and if the relevant governing instrument is the subject of a qualified reformation as hereinafter defined as a result of which a deduction under said section two thousand and fifty-five would be allowable from any federal estate tax, then a similar deduction shall be allowed from any tax imposed pursuant to this chapter to the extent that it can be attributed to property included in the Massachusetts gross estate. For purposes of this subsection, the term ''qualified reformation'' shall mean a change of a governing instrument which is a qualified reformation as defined in section two thousand and fifty-five (e) of the Internal Revenue Code in effect on January first, nineteen hundred and eighty-five. (d) If the right to claim any deduction otherwise allowable is waived for federal estate tax purposes, such right shall be considered waived for Massachusetts estate tax purposes.

M.G.L. c. 65C, § 3A Qualified terminable interest property

c. 65C, § 3A. Qualified terminable interest property Section 3A. (a) In the case of qualified terminable interest property, (i) for purposes of subsection (a) of section two thousand and fifty-six of the Code, such property shall be treated as passing to the surviving spouse, and (ii) for purposes of subsection (b)(1)(A) of section two thousand and fifty-six of the Code, no part of such property shall be treated as passing to any person other than the surviving spouse; provided, however, that a deduction with respect to such terminable interest property shall not be limited by subsection (c) of section two thousand and fifty-six of the Code. (b) For purposes of this section, the term ''qualified terminable interest property'' shall mean property (i) which is included in the Massachusetts gross estate, (ii) which passes from the decedent, (iii) in which the surviving spouse has a qualifying income interest for life, and (iv) to which an election under this section applies. (c) The surviving spouse has a qualifying income interest for life if (i) the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, and (ii) no person has a power to appoint any part of the property to any person other than the surviving spouse. Clause (ii) of this subsection shall not apply to a power exercisable only at or after the death of the surviving spouse. (d) The term ''property'' includes an interest in property. (e) A specific portion of property shall be treated as separate property. (f) An election under this section with respect to any property shall be made by the executor on the Massachusetts estate tax return filed within the time prescribed for filing such return, or any extension of such time granted by the commissioner, to have the property treated as qualified terminable interest property for Massachusetts estate tax purposes. Such election, once made, shall be irrevocable and shall be separate from and independent of any election made by the executor for federal estate tax purposes. (g) If the surviving spouse of the decedent is the only noncharitable beneficiary of a qualified charitable remainder trust, subsection (b)(1) of section two thousand and fifty-six of the Code shall not apply to any interest in such trust which passes or has passed from the decedent to such surviving spouse. For purposes of the preceding sentence, the term ''noncharitable beneficiary'' shall mean any beneficiary of the qualified charitable remainder trust other than an organization described in subsection (c) of section one hundred and seventy of the Code and the term ''qualified charitable remainder trust'' shall mean a charitable remainder annuity trust or charitable remainder unitrust as described in section six hundred and sixty-four of the Code. (h) Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent.

M.G.L. c. 65C, § 4 Nonresident decedents; tax on certain property located in commonwealth

c. 65C, § 4. Nonresident decedents; tax on certain property located in commonwealth Section 4. (a) A tax is hereby imposed on the transfer of a nonresident decedent's real and tangible personal property having an actual situs in Massachusetts, if such property would have been included in the Massachusetts gross estate had the decedent been a resident. (b) The tax imposed under subsection (a) shall be an amount which bears the same ratio to the tax that would be due if the decedent had been a resident as (i) the value of all real and tangible personal property, diminished by any mortgage or lien thereon, having an actual situs in Massachusetts, the transfer of which is subject to tax under said subsection (a) bears to (ii) the value of the decedent's Massachusetts gross estate, diminished by any mortgage or lien or property included therein, determined as if he had been a resident.

M.G.L. c. 65C, § 4A Generation-skipping transfers

c. 65C, § 4A. Generation-skipping transfers Section 4A. (a) When used in this section, the following words shall, unless the context indicates otherwise, have the following meanings:— (1) ''Generation-skipping transfer'', every transfer subject to the federal generation-skipping transfer tax in which the original transferor is a resident of the commonwealth at the date of original transfer or the property transferred is real or personal property in the commonwealth. (2) ''Original transferor'', any grantor, donor, settlor 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. (b) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is a resident of the commonwealth at the date of original transfer, in an amount equal to the amount allowable as a credit for state death taxes under section twenty-six hundred and two of the Internal Revenue Code of the United States in effect on December thirty-first, nineteen hundred and eighty-one. (c) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is not a resident of the commonwealth at the date of the original transfer but in which the property transferred includes real or personal property in the commonwealth, in an amount equal to the amount allowable as a credit for state death taxes under section twenty-six hundred and two of the Internal Revenue Code of the United States in effect on December thirty-first, nineteen hundred and eighty-one. (d) Every person required to file a return reporting a generation-skipping transfer under applicable federal law and regulations shall file with the commissioner, on or before the last day prescribed for filing the federal return, a return in such form as the commissioner may prescribe, including a duplicate copy of the federal return. (e) The person liable for payment of the federal generation-skipping transfer tax shall be liable for the tax imposed by this section, which tax is due upon a taxable distribution or taxable termination as determined under the applicable provisions of the federal generation-skipping transfer tax, and shall be paid to the commissioner. (f) Any person failing to file any payment of tax required by this section when due shall be subject to the interest and penalty provisions under sections thirty-two and thirty-three of chapter sixty-two C. (g) If, after a duplicate copy of the federal return of a generation-skipping transfer has been filed with the commissioner, the amount of the federal generation-skipping transfer tax is increased or decreased by the federal government, an amended return shall be filed with the commissioner showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax and in the state death tax credit relating thereto.

M.G.L. c. 65C, § 5 Valuation; gross estate

c. 65C, § 5. Valuation; gross estate Section 5. (a) Property in the Massachusetts gross estate shall be valued as of the date of death of the decedent; provided, however, that if an alternate valuation has been properly elected for purposes of the federal estate tax in accordance with section two thousand and thirty-two of the Code in effect on January first, nineteen hundred and eighty-five the property in the Massachusetts gross estate shall be valued as of the dates used for federal estate tax valuation purposes; and provided, further, that if no federal estate tax is payable under federal estate tax laws applicable to the decedent's estate, whether or not a federal estate tax return is required to be filed, the executor may elect to value the property in the Massachusetts gross estate on the alternate valuation dates and in the manner provided under the provisions of section two thousand and thirty-two of said Code on the Massachusetts estate tax return. (b) The value of an annuity, a life estate or an interest in property less than an absolute interest shall be determined in accordance with the actuarial tables in effect as of the decedent's death under section two thousand and thirty-one of the Code in effect on January first, nineteen hundred and eighty-five at such time and regulations issued thereunder. (c) If the gross estate of a decedent dying on or before December 31, 2018 includes real property devoted to use as a farm for farming purposes, the estate may elect to value such property in accordance with section 2032A of the Code in effect on January 1, 1985. If a federal return is required to be filed, such election shall be consistent with the election made for federal estate tax purposes. All substantive and procedural provisions of said section 2032A shall, insofar as pertinent and consistent, apply to such election. The commissioner shall promulgate regulations to carry out this subsection. (d)(1) As used in this subsection, the following words shall have the following meanings unless the context clearly requires otherwise: ''Applicable date'', the date upon which the 10–year period that the estate shall be liable for assessment under paragraph (4) begins; provided, however, that for qualifying agricultural and associated land, the applicable date shall be the date of death of the decedent; and provided further, that for qualifying noncommitted land, the applicable date shall be 2 years from the date of death of the decedent. ''Associated land'', land under the same ownership as and contiguous to qualifying agricultural land and which, as of the date of death of the decedent, is not committed to residential, industrial or commercial use; provided, however, that land shall be deemed contiguous if it is separated from other land under the same ownership only by a public or private way or waterway; provided further, that land under the same ownership shall be deemed contiguous if it is connected to other land under the same ownership by an easement for water supply; and provided further, that any such land in excess of 100 per cent of the acreage of qualifying agricultural land shall be deemed qualifying noncommitted land. ''Closely-held agricultural land'', qualifying agricultural and associated land and qualifying noncommitted land for which an election is made under this subsection. ''Qualifying agricultural land'', land which meets the definition of forest land under chapter 61, land actively devoted to agricultural, horticultural or agricultural and horticultural uses under chapter 61A and recreational land under chapter 61B that is also used for farming or agriculture as defined in section 1A of chapter 128 and has been devoted to any such use for not less than 2 of the tax years immediately preceding the death of the decedent; provided, however, that the land need not be classified by municipal assessors as forest land under chapter 61, land actively devoted to agricultural or horticultural or agricultural and horticultural uses under said chapter 61A or recreational land under said chapter 61B to qualify for valuation as closely-held agricultural land under this subsection. ''Qualifying noncommitted land'', land that is not qualifying agricultural land and is not committed to residential, industrial or commercial use, including associated land in excess of 100 per cent of the acreage of qualifying agricultural land. ''Savings'', the difference between the estate taxes paid as a result of an election made under this subsection and the estate taxes that would have otherwise been paid had the election not been made. (2) If the gross estate of a decedent dying on or after January 1, 2019 includes real property that is qualifying agricultural land, associated land or qualifying noncommitted land, the estate may elect to value such property, or any portion thereof, as closely-held agricultural land pursuant to the valuation set by the farmland valuation advisory commission established in section 11 of chapter 61A for the fiscal year of the most recent growing season. The value of closely-held agricultural land as determined pursuant to such election shall only be for the purpose of computing the tax due under this chapter. Such election shall be subject to paragraphs (3) to (6), inclusve. (3) Unless the property is restricted by a nondevelopment covenant that: (i) is approved by the commissioner of agriculture; (ii) is for the purposes of maintaining the land in agricultural use; (iii) precludes non-agricultural development of the land; (iv) is recorded at the registry of deeds in the counties or districts in which the property is located; and (v) does not expire within 10 years of the applicable date, the commissioner shall forthwith cause to be recorded in the registry of deeds of the counties or districts in which the property is situated a statement which shall constitute a lien upon the land covered by election under this subsection. The statement shall include any owners of record, the savings as a result of such election, the fair market value of the property and a description of the land adequate for identification. Unless such a statement is recorded, the lien shall not be effective with respect to a bona fide purchaser or other transferee without actual knowledge of the lien. Upon application by a record owner, any such lien shall be released by the commissioner with respect to that property upon the facts being established by record or by affidavit or otherwise that all assessments have been paid or unless it is more than 10 years past the applicable date and no assessment is due. All recording fees paid under this subsection, whether for statements of liens, certificates, releases or otherwise, shall be borne by the owner of record of the land. Property restricted by an agricultural preservation restriction as defined in section 31 of chapter 184 that is signed by the commissioner of agriculture shall be deemed to be restricted by a nondevelopment covenant if the restriction: (i) is approved by the commissioner of agriculture; (ii) is for the purposes of maintaining the land in agricultural use; (iii) precludes non-agricultural development of the land; (iv) is recorded at the registry of deeds in the counties or districts in which the property is located; and (v) does not expire within 10 years of the applicable date. (4)(i) When land valued as closely-held agricultural land under this subsection within a period of 10 years from the applicable date is sold for other use or no longer qualifies as closely-held agricultural land, any owners shall immediately notify the commissioner of such sale or change of use and an assessment shall be due to the commonwealth. Such assessment shall be calculated with interest based on the date of sale for other use or based on the last date of use as closely-held agricultural land as specified in this paragraph. The assessment shall be equal to 100 per cent of the savings if such date is not more than 1 year after the applicable date; 90 per cent of the savings if such date is more than 1 year but not more than 2 years after the applicable date; 80 per cent of the savings if such date is more than 2 years but not more than 3 years after the applicable date; 70 per cent of the savings if such date is more than 3 years but not more than 4 years after the applicable date; 60 per cent of the savings if such date is more than 4 years but not more than 5 years after the applicable date; 50 per cent of the savings if such date is more than 5 years but not more than 6 years after the applicable date; 40 per cent of the savings if such date is more than 6 years but not more than 7 years after the applicable date; 30 per cent of the savings if such date is more than 7 years but not more than 8 years after the applicable date; 20 per cent of the savings if such date is more than 8 years but not more than 9 years after the applicable date; 10 per cent of the savings if such date is more than 9 years but not more than 10 years after the applicable date. No assessment shall be due if such date is more than 10 years from the applicable date. Such assessment shall also include interest calculated at a simple interest rate of 5 per cent per annum on the savings from the applicable date. There shall be an additional assessment equal to 30 per cent of the savings if the date of sale for other use or the last date of use while qualified as closely-held agricultural land occurs not more than 1 year of the applicable date and 15 per cent of the savings if such date occurs more than 1 year but not more than 2 years after the applicable date. (ii) If an election has been made with respect to: (A) qualifying non-committed land which, on the applicable date, fails to meet the definition of forest land under chapter 61; (B) land actively devoted to agricultural or horticultural or agricultural and horticultural uses under chapter 61A; or (C) recreational land under chapter 61B that is also used for farming or agriculture as defined in section 1A of chapter 128, an assessment shall be due to the commonwealth and payable by the owners not more than 30 days of the applicable date; provided, however, that the land need not be classified by municipal assessors as forest land under said chapter 61, land actively devoted to agricultural or horticultural or agricultural and horticultural uses under said chapter 61A or recreational land under said chapter 61B. Such assessment shall be equal to the sum of: (I) 100 per cent of the savings; (II) interest calculated at a simple interest rate of 5 per cent per annum on the savings from the date of death of the decedent; and (III) an additional assessment equal to 30 per cent of the savings. (iii) Notwithstanding this paragraph, there shall be no assessment if the land involved, or a lesser interest in the land involved, is acquired for a natural resource by the commonwealth or by a nonprofit conservation organization; provided, however, that if any portion of the land is sold or converted to commercial, residential or industrial use not more than 10 years after the applicable date by a nonprofit conservation organization, an assessment shall be imposed against the nonprofit conservation organization in the amount that would have been imposed at the time of acquisition of the subject parcel by the nonprofit conservation organization had the transaction been subject to an assessment or, in the case of qualifying non-committed land acquired by a nonprofit conservation organization before the applicable date, the amount that would have been imposed on the applicable date under subparagraph (ii). (iv) In the case of sale for other use of closely-held agricultural land, other than qualifying noncommitted land sold for other use before the applicable date, assessments imposed by this subsection shall be due and payable by the grantor at the time of transfer of the property by deed or other instrument of conveyance. In the case of qualifying non-committed land sold for other use before the applicable date, assessments imposed by this subsection shall be due and payable by the grantor on the applicable date. In the case of change to a non-qualifying use, assessments imposed by this subsection shall be due and payable by the owners not more than 30 days after the last date of use as closely-held agricultural land, regardless of the date on which the commissioner was notified by the owners of such change of use. (v) An assessment shall only be imposed under this subsection on that portion of the land on which the use has changed. If, by conveyance or other action of the owner thereof, a portion of land which is valued as closely-held agricultural land under this subsection is separated for other use, the land so separated shall be subject to liability for assessment, interest and additional assessment under this paragraph based on the proportion that the acreage of the land so separated bears to the total acreage of the land valued as closely-held agricultural land under this subsection. (5) All buildings located on land which is valued as closely-held agricultural land under this subsection and all land occupied by a dwelling or regularly used for family living shall not be valued as provided in this subsection. (6) The commissioner shall promulgate regulations to carry out this subsection.

M.G.L. c. 65C, § 6 Executor's liability for tax

c. 65C, § 6. Executor's liability for tax Section 6. (a) The tax imposed by this chapter shall be paid by the executor. The term ''executor'', wherever used in this chapter, means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified and acting within the commonwealth, then any person in actual or constructive possession of any property of the decedent. The probate court may authorize an executor to sell so much of the property of the estate as will enable him to pay such tax in the same manner as it may authorize him to sell such property for the payment of debts. (b) No final account of an executor of any estate shall be allowed by the probate court unless and until the executor shall have filed in the probate court a certificate of the commissioner showing either that the amount of the tax has been paid, that payment thereof has been secured as provided in section ten, or that no tax is due. For dates of death on or after January 1, 1997, said certificate of the commissioner shall not be required.

M.G.L. c. 65C, § 7 Discharge of executor's personal liability

c. 65C, § 7. Discharge of executor's personal liability Section 7. If the executor makes a written application, accompanied by a copy of the final determination of federal estate tax liability, to the commissioner for determination of the amount of the tax and discharge from personal liability therefor, the commissioner, as soon as possible, and in any event within one year after the making of such application, or, if the application is made before the return is filed, then within one year after the return is filed, shall notify the executor of the amount of the tax. The executor, on payment of the amount of which he is notified, shall be discharged from personal liability for any deficiency in tax thereafter found to be due, and shall be entitled to a receipt or writing showing such discharge.

M.G.L. c. 65C, § 8 Records, statements and returns; rules and regulations

c. 65C, § 8. Records, statements and returns; rules and regulations Section 8. Every person liable for any tax imposed by this chapter, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the commissioner may from time to time prescribe.

M.G.L. c. 65C, § 10 Extension of due date for payment of tax

c. 65C, § 10. Extension of due date for payment of tax Section 10. (a) The commissioner may extend the time for payment of the tax imposed by this chapter for a reasonable period not to exceed six months from the date fixed for the payment thereof. If the commissioner finds that the payment on the due date of any part of such tax would result in undue hardship, he may extend the time for payment for a reasonable period not in excess of three years from the date fixed for payment of the tax. If an extension is granted, the commissioner may require the taxpayer:— (i) to deposit with the state treasurer bonds or other negotiable obligations of the commonwealth or of the United States of America of such aggregate face amount as the commissioner may from time to time deem necessary to adequately secure payment of such taxes; or (ii) to give a bond to the state treasurer in such amount and with such sureties as the commissioner deems necessary, conditioned upon the payment of the amount with respect to which the extension is granted in accordance with the terms of the extension. In case of a deposit of bonds or other negotiable obligations with the state treasurer hereunder he shall pay to such taxpayer the interest accruing thereon, and, if such taxes shall be paid in full when due in accordance with the terms of the extension, he shall return such bonds or obligations to the persons entitled thereto; but if such taxes shall not be paid when due, the state treasurer may sell all or any part of such bonds or obligations to satisfy such taxes, and shall return to the taxpayer all the proceeds of such sale, and all such bonds or obligations, remaining in his hands after satisfying such taxes. (b) If the value of a reversionary or remainder interest in property is included in the value of the gross estate, the payment of the part of the tax imposed by this chapter attributable to such interest may, at the election of the executor, be postponed until six months after the termination of the precedent interest or interests in the property, and the amount the payment of which is so postponed shall then be payable, together with interest thereon at the rate of eight per cent per annum from the date the tax was payable under section thirty-two of chapter sixty-two C until such amount is paid. The postponement of such amount shall be under regulations to be prescribed by the commissioner, and shall be upon condition that the executor, or any other person liable for the tax, shall give bond to the state treasurer in such amount, and with such sureties as the commissioner deems necessary, conditioned upon the payment within six months after the termination of such precedent interest or interests of the amount the payment of which is so postponed together with interest thereon, as hereinbefore provided.

M.G.L. c. 65C, § 13 Fraudulent underpayment; penalty

c. 65C, § 13. Fraudulent underpayment; penalty Section 13. If any part of any underpayment of tax required to be shown on the return required by section seventeen of chapter sixty-two C is due to fraud, there shall be added to the tax an amount equal to fifty per cent of the underpayment. For purposes of this section, the term ''underpayment'' means a deficiency assessed pursuant to subsection (b) of section twenty-six of chapter sixty-two C except that, for this purpose, the tax shown on a return referred to in subsection (a) of said section twenty-six shall be taken into account only if such return was filed before the last day prescribed for the filing of such return, determined with regard to any extension of time. If any penalty is assessed for fraud under this section for an underpayment of tax required to be shown on the return, no penalty under section thirty-three of chapter sixty-two C shall be assessed with respect to the same underpayment.

M.G.L. c. 65C, § 14 Lien for unpaid tax; liability for delinquent tax; release or discharge of lien

c. 65C, § 14. Lien for unpaid tax; liability for delinquent tax; release or discharge of lien Section 14. (a) Unless the tax imposed by this chapter is sooner paid in full, it shall be a lien for ten years from the date of death upon the Massachusetts gross estate of the decedent, except that such part of the Massachusetts gross estate as is used for the payment of charges against the estate and expenses of its administration, allowed by the probate court having jurisdiction thereof, shall be divested of such lien. For dates of death on or after January 1, 1997, an affidavit of the executor, subscribed to under the pains and penalties of perjury, recorded in the appropriate registry of deeds and stating that the gross estate of the decedent does not necessitate a federal estate tax filing, shall release the gross estate of the lien imposed by this section. (b) If the tax imposed by this chapter is not paid when due, then the spouse, transferee, trustee, surviving tenant, person in possession of the real or personal property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent's death, real or personal property included in the Massachusetts gross estate to the extent of the value, at the time of the decedent's death, of such property shall be personally liable for such tax. Any part of such real property, which, prior to the decedent's death, was conveyed by a deed of the decedent not disclosing an intention that it take effect in possession or enjoyment at or after his death and such deed was recorded or registered prior to the decedent's death, and any part of such personal property transferred by, or transferred by a transferee of, such spouse, transferee, trustee, surviving tenant, person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser, mortgagee or pledgee, for an adequate and full consideration in money or money's worth shall be divested of the lien provided in subsection (a), and a lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, beneficiary, or transferee of any such person, except any part transferred to a bona fide purchaser, mortgagee or pledgee for an adequate and full consideration in money or money's worth. (c) The lien imposed by this section shall not be valid with respect to a security, as hereinafter defined, as against any mortgagee, pledgee, or purchaser of any such security, for an adequate and full consideration in money or money's worth, or if at the time of such mortgage, pledge, or purchase such mortgagee, pledgee or purchaser is without notice or knowledge of the existence of such lien. As used in this section, the term ''security'' shall mean any bond, debenture, note or certificate or other evidence of indebtedness, issued by any corporation, including one issued by a government or political subdivision thereof, with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money. (d) The commissioner may release, or give a partial discharge of, any lien imposed by this chapter with respect to all or any part of the property subject to such lien, if he is satisfied that the collection of the tax will not thereby be jeopardized. The issuance by the commissioner of any certificate of release or of partial discharge shall be held conclusive that the lien upon the property covered by the certificate is extinguished. (e) Such lien shall cease to attach to any personal property after the same has been sold or disposed of for value by the person lawfully entitled to make such sale or disposition; provided, however, that such lien shall forthwith, upon any sale or disposition of such personal property, attach to the proceeds or other property acquired in substitution therefor. A license issued or decree entered authorizing the sale of real estate of a resident decedent or of any property of a nonresident decedent subject to such lien shall state affirmatively that the commissioner has released or discharged the lien, and before such a license or decree is issued or entered, it shall appear in the records of the probate court that the commissioner has released or discharged the lien with respect to such property. (f) In the case of any interest in qualified real property, devoted to use as a farm for farming purposes and valued pursuant to the provisions of subsection (c) of section 5, an amount equal to the adjusted tax difference attributable to such interest within the meaning of section two thousand and thirty-two A of the Code in effect on January first, nineteen hundred and eighty-five shall be a lien in favor of the commonwealth on the property in which such interest exists. Such lien shall arise at the time an election is filed under subsection (c) and shall continue with respect to any interest in the qualified real property (1) until the liability of tax under subsection (c) of section two thousand and thirty-two A of said Code, with respect to such interest has been satisfied or (2) until it is established to the satisfaction of the commissioner that no further tax liability may arise under section two thousand and thirty-two A of said Code, with respect to such interest. For purposes of this section, the term ''qualified real property'' includes qualified replacement property (within the meaning of section two thousand and thirty-two A(h)(3)(B) of said Code, and qualified exchange property (within the meaning of section two thousand and thirty-two A(i)(3) of said Code.

M.G.L. c. 65C, § 15 Assessment of tax on decedent's transferee

c. 65C, § 15. Assessment of tax on decedent's transferee Section 15. (a) The amount of the liability, at law or in equity, of a transferee of property of a decedent in respect of the tax imposed by this chapter shall, except as hereinafter in this section provided, be assessed, collected, and paid in the same manner and subject to the same provisions and limitations as in the case of the tax with respect to which the liability was incurred. Any such liability may be either as to the amount of tax shown on a return or as to any deficiency in tax. (b) The period of limitations for assessment of any such liability of a transferee shall be as follows:— (i) In the case of the liability of an initial transferee, within one year after the expiration of the period of limitation for assessment against the transferor. (ii) In the case of the liability of a transferee within one year after the expiration of the period of limitation for assessment against the preceding transferee, but not more than three years after the expiration of the period of limitation for assessment against the initial transferor; except that if, before the expiration of the period of limitation for the assessment of the liability of the transferee, a court proceeding for the collection of the tax or liability in respect thereof has been begun against the initial transferor or the last preceding transferee, respectively, then the period of limitation for assessment of the liability of the transferee shall expire one year after the return of execution. (c) In the absence of notice to the commissioner under section sixteen of the existence of a fiduciary relationship, any notice of liability enforceable under this section, if addressed in the name of the decedent or other person subject to liability and mailed to his last known address, shall be sufficient. (d) As used in this section, the term ''transferee'' includes donee, heir, legatee, devisee and his distributee, and includes a person who, under subsection (b) of section fourteen, is personally liable for any part of the tax.

M.G.L. c. 65C, § 16 Executor; fiduciaries; assumption of powers and duties

c. 65C, § 16. Executor; fiduciaries; assumption of powers and duties Section 16. (a) Upon notice to the commissioner that any person is acting as executor, such person shall assume the powers, rights, duties and privileges of an executor in respect of the tax imposed by this chapter until notice is given that such person is no longer acting as executor. (b) Upon notice to the commissioner that any person is acting in a fiduciary capacity for a person subject to the liability specified in section fifteen, the fiduciary shall assume on behalf of such person the powers, rights, duties, and privileges of such person under such section, except that the liability shall be collected from the estate of such person, until notice is given that the fiduciary capacity has terminated.

M.G.L. c. 65C, § 21 Death taxes of nonresident decedent; proof of payment; filing

c. 65C, § 21. Death taxes of nonresident decedent; proof of payment; filing Section 21. (a) The terms ''death tax'' and ''death taxes'', as used in this section, shall include inheritance, succession, transfer and estate taxes and any taxes levied against the estate of a decedent upon the occasion of his death. (b) At any time before the expiration of eighteen months after the qualification in any probate court in the commonwealth of any executor of the will or administrator of the estate of any nonresident decedent, such executor or administrator shall file with such court proof that all death taxes, together with interest or penalties thereon, which are due to the state of domicile of such decedent or to any political subdivision thereof, have been paid or secured, or that no such taxes, interest or penalties are due, as the case may be, unless it appears that letters testamentary or of administration have been issued on the estate of such decedent in the state of his domicile, herein called the domiciliary state. (c) The proof required by subsection (b) may be in the form of a certificate issued by the official or body charged with the administration of the death tax laws of the domiciliary state. If such proof has not been filed within the time limited in subsection (b) and if within such time it does not appear that letters testamentary or of administration have been issued in the domiciliary state, the register of probate shall forthwith upon the expiration of such time notify by mail the official or body of the domiciliary state charged with the administration of the death tax laws thereof with respect to such estate, and shall state in such notice so far as is known to him— (i) the name, date of death and last domicile of such decedent, (ii) the name and address of each executor or administrator, (iii) a summary of the values of the real estate, tangible personalty, and intangible personalty, wherever situated, belonging to such decedent at the time of his death, and (iv) the fact that such executor or administrator has not filed theretofore the proof required in subsection (b). Such register shall attach to such notice a plain copy of the will and codicils of such decedent, if he dies testate, or, if he died intestate, a list of his heirs and next of kin, so far as is known to such register. Within sixty days after the mailing of such notice the official or body charged with the administration of the death tax laws of the domiciliary state may file with such probate court in this commonwealth a petition for an accounting in such estate, and such official or body of the domiciliary state shall, for the purposes of this section, be a party interested for the purpose of petitioning such probate court for such accounting. If such petition be filed within said period of sixty days, such probate court shall order such accounting, and upon such accounting being filed and approved shall order either the payments of any such tax found to be due to the domiciliary state or subdivision thereof or the remission to a fiduciary appointed or to be appointed by the probate court, or other court charged with the administration of estates of decedents, of the domiciliary state, of creditors and expenses of administration in this commonwealth. (d) No final account of an executor or an administrator of a nonresident decedent shall be allowed unless either:— (i) proof has been filed as required by subsection (b), or (ii) notice under subsection (c) has been given to the official or body charged with the administration of the death tax laws of the domiciliary state, and such official or body has not petitioned for an accounting under said section within sixty days after the mailing of such notice, or (iii) an accounting has been filed and approved under said subsection (c), an order has been made upon such accounting and it appears that the executor or administrator has paid such sums and remitted such securities, if any, as he was required to pay or remit by such decree, or (iv) it appears that letters testamentary or of administration have been issued by the domiciliary state and that no notice has been given under said subsection (c). (e) This section shall apply to the estate of a nonresident decedent only in case the laws of the domiciliary state contain a provision, of any nature or however expressed, whereby the commonwealth is given reasonable assurance, as finally determined by the commissioner, of the collection of its death taxes, interest and penalties from the estates of decedents dying domiciled in the commonwealth, when such estates are administered in whole or in part by a probate court or other court charged with administration of estates of decedents in such other states. (f) The provisions of this section shall be liberally construed in order to insure that the domiciliary state of any nonresident decedent whose estate is administered in the commonwealth shall receive any death taxes, together with interest and penalties thereon, due to it from the estate of such decedent.

M.G.L. c. 65C, § 24 Documents; issuance; fees

c. 65C, § 24. Documents; issuance; fees Section 24. The commissioner is hereby authorized to issue the following documents and to charge and collect therefor the fees as determined annually by the commissioner of administration under the provision of section three B of chapter seven, except that in those cases where a fee has been paid with the filing of a return under section seventeen of chapter sixty-two C, no additional fee shall be charged or collected for copies of any of said documents. In each case, the fee for a duplicate original or for additional copies of any document shall be the same as for the document itself. (a) For a certificate of release of any lien imposed by this chapter, a certificate of discharge of any property subject to any lien imposed by this chapter, or a certificate that particular property is free of any lien imposed by this chapter. (b) For a certificate showing no tax is due under this chapter as a result of the death of a specified decedent. (c) For a copy of a computation sheet showing the computation of the tax due under this chapter as a result of the death of a specified decedent. (d) For a certificate showing the amount of tax paid under this chapter. (e) For a duplicate copy of a notice of assessment showing the amount of any tax assessed under this chapter. (f) For a duplicate copy of a receipt showing the amount of any tax paid under this chapter.

M.G.L. c. 65C, § 26 Tax evasion; penalties

c. 65C, § 26. Tax evasion; penalties Section 26. Any person who willfully attempts in any manner to evade or defeat any tax imposed by this chapter or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be punished by a fine of not more than five thousand dollars, or by imprisonment for not more than two and one half years, or both.

M.G.L. c. 65C, § 27 Willful failure to pay tax or provide information; penalties

c. 65C, § 27. Willful failure to pay tax or provide information; penalties Section 27. Except as otherwise expressly provided in this chapter, any person required under this chapter to pay any tax, or required by this chapter or chapter sixty-two C, or regulations made under the authority of chapter fourteen and chapter sixty-two C to make a return or supply any information, who willfully fails to pay such tax or make such return or supply such information at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not more than one thousand dollars, or by imprisonment in a jail or house of correction for not more than one year, or both.

M.G.L. c. 65C, § 28 Removal or concealment of goods; penalties

c. 65C, § 28. Removal or concealment of goods; penalties Section 28. Any person who removes, deposits or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, with intent to evade or defeat the assessment or collection of any tax imposed by this chapter shall be guilty of a felony and, upon conviction thereof, shall be punished by a fine of not more than one thousand dollars or imprisonment in jail for not more than two years, or both.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter65CFetched: 10/20/2026