1. (a) In no event shall the California Estate Tax result in a total death tax liability to the State of California and the United States in excess of the death tax liability to the United States which would result if Section 13302 of the Revenue and Taxation Code were not in effect. However, in no event shall the California Estate Tax be less than the credit for state death taxes (adjusted under Section 13304 if applicable) less the credits that would have been claimed on lines 17 through 19 on page 1 of the federal estate tax return if there had been no California Estate Tax.

2. (b) Two calculations of the estate tax are made: one computing the total state and federal estate tax due and one computing the federal estate tax assuming no California estate tax. The sum obtained in the first computation cannot exceed the amount determined in the second computation. If it does, the California Estate Tax is reduced by the excess.

   This may be stated by the following formula:

   CET + FET <=FET assuming no CET.

Note: Authority cited: Section 14103, Revenue and Taxation Code. Reference: Section 13302, Revenue and Taxation Code.

History

1. New section filed 4-29-96; operative 5-29-96 (Register 96, No. 18)