Bill Text: IA HF2437 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act exempting from the inheritance tax the entire amount of property, interest in property, and income passing to a natural person, and including applicability provisions.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2014-03-25 - Fiscal note. HCS. [HF2437 Detail]
Download: Iowa-2013-HF2437-Introduced.html
House
File
2437
-
Introduced
HOUSE
FILE
2437
BY
SALMON
,
FISHER
,
HEARTSILL
,
KAUFMANN
,
SHEETS
,
LANDON
,
DEYOE
,
and
SCHULTZ
A
BILL
FOR
An
Act
exempting
from
the
inheritance
tax
the
entire
amount
1
of
property,
interest
in
property,
and
income
passing
to
a
2
natural
person,
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2437
Section
1.
Section
450.1,
subsection
1,
paragraph
e,
Code
1
2014,
is
amended
by
striking
the
paragraph.
2
Sec.
2.
Section
450.7,
subsection
1,
paragraph
a,
Code
2014,
3
is
amended
to
read
as
follows:
4
a.
The
share
of
the
estate
passing
to
the
surviving
spouse,
5
and
parents,
grandparents,
great-grandparents,
and
other
lineal
6
ascendants,
children
including
legally
adopted
children
and
7
biological
children
entitled
to
inherit
under
the
laws
of
this
8
state,
stepchildren,
and
grandchildren,
great-grandchildren,
9
and
other
lineal
descendants
a
natural
person
is
excluded
from
10
taxation
under
this
chapter
.
11
Sec.
3.
Section
450.9,
Code
2014,
is
amended
to
read
as
12
follows:
13
450.9
Individual
exemptions
Exemption
.
14
In
computing
the
tax
on
the
net
estate,
the
entire
15
amount
of
property,
interest
in
property,
and
income
16
passing
to
the
surviving
spouse,
and
parents,
grandparents,
17
great-grandparents,
and
other
lineal
ascendants,
children
18
including
legally
adopted
children
and
biological
children
19
entitled
to
inherit
under
the
laws
of
this
state,
stepchildren,
20
and
grandchildren,
great-grandchildren,
and
other
lineal
21
descendants
are
a
natural
person
is
exempt
from
tax.
22
Sec.
4.
Section
450.10,
subsections
1,
2,
5,
and
6,
Code
23
2014,
are
amended
by
striking
the
subsections.
24
Sec.
5.
Section
450.22,
subsection
2,
Code
2014,
is
amended
25
by
striking
the
subsection.
26
Sec.
6.
Section
450.22,
subsection
3,
Code
2014,
is
amended
27
to
read
as
follows:
28
3.
a.
However,
this
This
section
does
not
apply
and
a
29
return
is
not
required
to
be
filed,
even
though
real
estate
30
is
involved,
if
the
estate
does
not
have
a
federal
estate
tax
31
filing
obligation
and
if
all
the
estate’s
assets
are
described
32
in
any
of
the
following
categories:
33
(1)
Assets
held
in
joint
tenancy
with
right
of
survivorship
34
between
husband
and
wife
alone.
35
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(2)
a.
Assets
held
in
joint
tenancy
with
right
of
1
survivorship
solely
between
the
decedent
and
individuals
listed
2
in
section
450.9
as
individuals
that
are
entirely
exempt
from
3
Iowa
inheritance
tax
a
natural
person
.
4
(3)
b.
Assets
passing
by
beneficiary
designation,
pursuant
5
to
a
trust
intended
to
pass
the
decedent’s
property
at
death
6
or
through
any
other
nonprobate
transfer
solely
to
individuals
7
listed
in
section
450.9
as
individuals
that
are
entirely
exempt
8
from
Iowa
inheritance
tax
natural
persons
.
9
b.
This
subsection
does
not
apply
to
interests
in
an
asset
10
or
assets
that
pass
to
both
an
individual
listed
in
section
11
450.9
and
to
that
individual’s
spouse.
12
Sec.
7.
Section
450.53,
subsection
1,
paragraph
b,
Code
13
2014,
is
amended
to
read
as
follows:
14
b.
Notwithstanding
paragraph
“a”
,
an
inheritance
tax
return
15
is
not
required
to
be
filed
if
the
estate
does
not
have
a
16
federal
estate
tax
filing
obligation
and
if
all
the
estate
or
17
trust
assets
pass
solely
to
individuals
listed
in
section
450.9
18
as
individuals
that
are
entirely
exempt
from
Iowa
inheritance
19
tax
natural
persons
.
This
paragraph
is
not
applicable
if
20
interests
in
the
asset
pass
to
both
an
individual
listed
in
21
section
450.9
and
to
that
individual’s
spouse.
22
Sec.
8.
APPLICABILITY.
This
Act
applies
to
estates
of
23
decedents
dying
on
or
after
July
1,
2014.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
the
exemption
from
the
Iowa
inheritance
28
tax
of
the
shares
of
the
estate
passing
to
certain
persons.
29
Under
current
law,
the
entire
amount
of
property,
interest
in
30
property,
and
income
passing
to
the
surviving
spouse
or
the
31
lineal
ascendants
and
descendants
of
the
decedent
are
exempt
32
from
the
inheritance
tax.
The
bill
exempts
the
entire
amount
33
of
property,
interest
in
property,
and
income
passing
to
any
34
natural
person
from
the
inheritance
tax.
35
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2437
The
bill
also
makes
several
conforming
changes
relating
to
1
the
exemption
from
the
requirement
to
file
an
inheritance
tax
2
return
to
provide
that
a
return
need
not
be
filed
if
the
estate
3
does
not
have
a
federal
estate
tax
filing
obligation
and
all
4
assets
pass
solely
to
natural
persons.
5
The
bill
applies
to
estates
of
decedents
dying
on
or
after
6
July
1,
2014.
7
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5555YH
(5)
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mm/sc
3/
3