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"Decoupling" State Estate Taxes from the Federal Estate Tax
The phase-out and repeal of the federal estate tax will automatically cancel state estate taxes, costing the states billions of dollars in much-needed revenue —unless the states act to "decouple" their estate tax from the federal estate tax. Eighteen states plus the District of Columbia have already done so (see table below).
For more on this topic, see:
Many States Are Decoupling from the Federal Estate Tax Cut, Center on Budget and Policy Priorities, Aug. 7, 2003.
States Can Retain Their Estate Taxes Even As the Federal Estate Tax is Phased Out, Center on Budget and Policy Priorities, Feb. 4, 2003.
|
State
|
Decoupled?
|
Remarks
|
|
Alabama
|
NO
|
Decoupling would require a constitutional amendment.
|
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Alaska
|
NO
|
|
|
Arizona
|
NO
|
|
|
Arkansas
|
NO
|
|
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California
|
NO
|
Decoupling requires a vote of the people.
|
|
Colorado
|
NO
|
|
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Connecticut
|
NO
|
|
|
Delaware
|
NO
|
|
| District
of Columbia |
YES
|
|
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Florida
|
NO
|
Decoupling would require a constitutional amendment.
|
|
Georgia
|
NO
|
|
|
Hawaii
|
NO
|
|
|
Idaho
|
NO
|
|
|
Illinois
|
YES
|
|
|
Indiana
|
NO
|
|
|
Iowa
|
NO
|
|
|
Kansas
|
YES
|
|
|
Kentucky
|
NO
|
|
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Louisiana
|
NO
|
|
|
Maine
|
YES
|
Decoupled through at least 2004.
|
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Maryland
|
YES
|
|
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Massachusetts
|
YES
|
|
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Michigan
|
NO
|
|
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Minnesota
|
YES
|
|
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Mississippi
|
NO
|
|
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Missouri
|
NO
|
|
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Montana
|
NO
|
|
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Nebraska
|
YES
|
Created a separate estate tax.
|
|
Nevada
|
NO
|
Decoupling would require a constitutional amendment.
|
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New Hampshire
|
NO
|
|
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New Jersey
|
YES
|
|
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New Mexico
|
NO
|
|
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New York
|
YES
|
|
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North Carolina
|
YES
|
|
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North Dakota
|
NO
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Ohio
|
YES
|
|
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Oklahoma
|
YES
|
No need to decouple.
|
|
Oregon
|
YES
|
|
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Pennsylvania
|
YES
|
|
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Rhode Island
|
YES
|
|
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South Carolina
|
NO
|
|
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South Dakota
|
NO
|
|
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Tennessee
|
NO
|
|
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Texas
|
NO
|
|
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Utah
|
NO
|
|
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Vermont
|
YES
|
|
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Virginia
|
YES
|
|
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Washington
|
YES
|
|
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West Virginia
|
NO
|
|
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Wisconsin
|
YES
|
Decoupled through 2007.
|
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Wyoming
|
NO
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