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Line Instructions (continued)
Line 10
Use the 2023 Rate Table to determine the amount to enter on line 10.
2023 Rate Table
If line 9 is: over but not over Enter on line 10 of Form M706: of the amount over
0 7,100,000 0 + 13.0% 0
7,100,000 8,100,000 923,000 + 13.6% 7,100,000
8,100,000 9,100,000 1,059,000 + 14.4% 8,100,000
9,100,000 10,100,000 1,203,000 + 15.2% 9,100,000
10,100,000 — 1,355,000 + 16.0% 10,100,000
Line 11
Use Worksheet B on page 3 of Form M706 to determine the amount to enter on line 11.
Worksheet B Instructions
Step 1 – Minnesota Gross Estate. From the federal estate tax return, add the gross value of each item of the decedent’s real and tangible person-
al property located in Minnesota. If the decedent is a resident of Minnesota, include all intangible personal property. Resident estates, provide a
schedule of property not included on this line. Nonresident estates, provide a schedule of property included in this line.
A nonresident decedent who owns an interest in a pass-through entity that has real or tangible personal property located or normally kept in
Minnesota must include that real or tangible personal property on step 1 of Worksheet B. Pass-through entities include S corporations, partner-
ships, limited liability companies, and trusts. A pass-through entity excludes securities traded on an exchange regulated by the SEC.
Step 2 – Gifts of Property with Minnesota Situs. From the federal taxable gifts included on line 2b of Form M706, add the gross value of each
real or tangible item of personal property located in Minnesota at the time the gift was executed. If the decedent was a resident of Minnesota at
the time of the gift, include intangible personal property.
Step 7 – Ratio. When dividing step 3 by step 6, round the result to five decimal places and enter on step 7. Multiply the ratio on step 7 by the
amount on line 10 of Form M706. Enter that result on line 11 of Form M706.
Line 12 — Nonresident Decedent Tax Credit
This nonrefundable credit is for nonresident decedents who reported in the gross estate real or tangible personal property owned by the decedent
through a pass-through entity.
Determine the amount of Line 12 by entering the lesser of the following:
• The amount of estate or inheritance tax paid to another state attributable to property with Minnesota situs held in the pass-through entity.
• The amount of tax due (before credits) attributable to the property with Minnesota situs held in the pass-through entity.
To determine the amount of tax attributable to property with Minnesota situs held in the pass-through entity, the estate must determine the
amount the estate or inheritance tax that was increased as a result of including the market value of the property in the estate or treating the value
as a taxable inheritance to the recipient of the property.
The lesser of the two values is $0 if any of the following is true:
• The decedent was a Minnesota resident.
• The decedent was a nonresident and the estate tax return did not report property with Minnesota situs held in a pass-through entity.
• The decedent was a nonresident and the estate tax return did not pay any estate or inheritance tax to another state attributable to property with
Minnesota situs held in a pass-through entity.
Line 14 — Payments Previously Made
If you paid Minnesota estate tax before you filed this return, enter the amount you already paid, including any extension payments.
Line 16 — Penalties
The regular due date for filing and paying the Minnesota estate tax return and paying the total estate tax owed is nine months after the dece-
dent’s date of death. If the return is filed after the extended filing due date or the tax is paid after the regular payment due date, the estate is
subject to penalties.
Late payment. A penalty is due if you don’t pay the total Minnesota estate tax by the regular payment due date. The penalty is 6 percent of the
unpaid tax.
If you file your Minnesota estate tax return after the regular filing due date and you don’t pay the tax as reported on your return at the time you
file, an additional 5 percent late payment penalty is due on the unpaid tax.
Late filing. If you file after the extended filing due date and you owe tax, you must pay an additional penalty for filing late. The late filing pen-
alty is 5 percent of the unpaid tax.
Extended delinquency. An additional penalty is due if the return is not filed within 30 days after the department sends a written demand. The
penalty is 5 percent of the tax not paid prior to the demand.
(M.S. 289A.60, subd. 2a)
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