Generation-Skipping Transfer Tax.

Ala. Code tit. 40, ch. 15A

in effect

Ala. Code § 40-15A-1 Meaning of “Generation-Skipping Transfer.”

40-15A-1. Meaning of “Generation-Skipping Transfer.” Pursuant to this chapter, the term “generation-skipping transfer” shall have the meaning ascribed to it in Section 2611 of the Internal Revenue Code, as amended from time to time. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §1.)

Ala. Code § 40-15A-2 Amount of Tax.

40-15A-2. Amount of Tax. Subject to the exception hereinafter stated, there is hereby levied and imposed upon all generation-skipping transfers occurring after December 31, 1987 that involve property subject to tax pursuant to Section 40-15A-3 hereunder, a tax equal to the full amount of state tax permissible when levied by and paid to the State of Alabama as a credit in computing any federal generation-skipping transfer tax imposed on such transfer according to the act of Congress in effect, on the date of the transfer. The tax hereby imposed shall not exceed in the aggregate amounts which may by any law of the United States be allowed to be credited against such federal generation-skipping transfer tax. The generation-skipping transfer tax hereby levied shall be levied only so long as and during the time a generation-skipping transfer tax is enforced by the United States against Alabama generation-skipping transfers and shall only be exercised or enforced to the extent of absorbing the maximum amount of any deduction or credit which may be permitted by the laws of the United States now existing or hereafter enacted to be claimed by reason thereof as a deduction or credit against such similar tax of the United States applicable to Alabama generation-skipping transfers. The rates of taxation, the method of arriving thereat and the definition of “generation-skipping transfer” and “transferor” shall be as provided in such act of Congress. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §2.)

Ala. Code § 40-15A-3 Taxable Property.

40-15A-3. Taxable Property. The tax imposed by the provisions of this chapter shall be applicable to the following property: (1) Any intangible personal property of a transferor who is domiciled in the State of Alabama (i) as of the date of the transfer, or (ii) as of the date of his death if such transfer occurs after the date of his death, (2) Any tangible personal property and real property of a transferor which is located in the State of Alabama as of the date of the generation-skipping transfer. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §3.)

Ala. Code § 40-15A-4 Payment of Tax Imposed; Property to Which It Is Charged.

40-15A-4. Payment of Tax Imposed; Property to Which It Is Charged. (a) The tax imposed by this chapter shall be paid by such individual or entity person as is liable for making payment of the federal generation-skipping transfer tax pursuant to federal law. (b) The tax imposed by this chapter shall be charged to the same property as is designated by federal law for the payment of the federal generation-skipping tax, and if not so provided, then on the same basis and in the same manner as provided in Section 40-15-18 for the payment of estate taxes. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §4.)

Ala. Code § 40-15A-5 Duplicate of Federal Returns Filed with Federal Authorities; Computation by Department of Revenue; Disposition of Proceeds.

40-15A-5. Duplicate of Federal Returns Filed with Federal Authorities; Computation by Department of Revenue; Disposition of Proceeds. (a) A duplicate of all the returns filed with the federal authorities in connection with the federal generation-skipping transfer tax shall be filed with the Department of Revenue of the State of Alabama. When such duplicate return is filed with the Department of Revenue, it shall compute the amount of tax that would be due upon said return as federal generation-skipping transfer tax imposed under any federal act permitting credit for a state generation-skipping transfer tax and shall assess against the transfer the amount levied and found to be due under the provisions of such act or acts. If, after the filing of any duplicate returns herein required and the determination of the state generation-skipping transfer tax, the federal authorities shall increase or decrease the amount of the federal generation-skipping transfer tax, an amended return shall be filed with the Department of Revenue, showing all of the changes made in the original return and the amount of final increase or decrease in the federal tax. In the event of an increase in the federal tax, the Department of Revenue shall assess against the transfer the additional amount found to be due hereunder. In the event of a decrease in the federal tax, the state shall refund to the transferor its proportion of said decrease. (b) The tax imposed by this chapter shall be due and payable on or before the time prescribed for filing the return and making payment of the federal generation-skipping transfer tax, and such payment and duplicate return shall be filed and paid with the Department of Revenue by the person who is required to make the return according to regulations prescribed by the Secretary of the Treasury, in accordance with the guidelines of §2662, Internal Revenue Code. (c) All revenues collected under the provisions of this chapter shall be deposited to the State General Fund. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §5.)

Ala. Code § 40-15A-7 Extenuation of Time for Payment; Payment Demand Not in Excess of Total Tax.

40-15A-7. Extenuation of Time for Payment; Payment Demand Not in Excess of Total Tax. The tax hereby levied being based and conditioned upon the levy of a similar tax by the United States, in the event that after due return filed with the federal authorities and the Department of Revenue, the tax shall not have been arrived at when payment would otherwise become due or delinquent hereunder, then and in such event the time for payment of the tax due hereunder shall, on showing being made to the Department of Revenue, be extended until final agreement, determination or assessment of tax shall have been made by the federal authorities; provided, that the Department of Revenue may demand and require the payment of such amount of the tax as it may determine will not be in excess of the total tax that will be due the State of Alabama under this chapter, as shown by the tax return made, when the final determination of the amount of the assessment shall have been made for federal tax purposes. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §7.)

Ala. Code § 40-15A-9 Lien of State.

40-15A-9. Lien of State. The State of Alabama shall have a lien for all taxes and interest thereon which are or may become due hereunder on all property subject to taxes under this chapter, in whatever form of investment it may happen to be, and all property acquired in substitution therefor. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §9.)

Ala. Code § 40-15A-13 Administration of Chapter.

40-15A-13. Administration of Chapter. The administration of this chapter shall be conducted in accordance with Title 40, Chapter 15. The Department of Revenue shall prescribe the forms and reasonable rules of procedure in conformity with this chapter for making returns and for ascertainment, assessment and collection of the taxes imposed hereunder. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §13.)

Ala. Code § 40-15A-14 Property Outside of State.

40-15A-14. Property Outside of State. The Department of Revenue is hereby granted authority to issue regulations setting forth how an allocation of the tax imposed by this chapter shall be made in the event property subject to tax hereunder shall also be subject to a generation-skipping transfer tax in another state. (Acts 1988, 1st Ex. Sess., No. 88-837, p. 307, §14.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026