Bill Text: IA SF82 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act reducing the state inheritance tax rates and providing for the future repeal of the state inheritance tax and state qualified use inheritance tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-17 - Subcommittee reassigned: Feenstra, Behn, and Hogg. S.J. 118. [SF82 Detail]
Download: Iowa-2017-SF82-Introduced.html
Senate File 82 - Introduced SENATE FILE BY ZAUN A BILL FOR 1 An Act reducing the state inheritance tax rates and providing 2 for the future repeal of the state inheritance tax and state 3 qualified use inheritance tax. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1568XS (2) 87 mm/sc PAG LIN 1 1 Section 1. Section 450.10, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 7. a. In lieu of each rate of tax imposed 1 4 in subsections 1 through 4, for property passing from the 1 5 estate of a decedent dying on or after July 1, 2018, but before 1 6 July 1, 2019, there shall be imposed a rate of tax equal to 1 7 the applicable tax rate in subsections 1 through 4, reduced by 1 8 ten percent, and rounded to the nearest one=hundredth of one 1 9 percent. 1 10 b. In lieu of each rate of tax imposed in subsections 1 1 11 through 4, for property passing from the estate of a decedent 1 12 dying on or after July 1, 2019, but before July 1, 2020, there 1 13 shall be imposed a rate of tax equal to the applicable tax rate 1 14 in subsections 1 through 4, reduced by twenty percent, and 1 15 rounded to the nearest one=hundredth of one percent. 1 16 c. In lieu of each rate of tax imposed in subsections 1 1 17 through 4, for property passing from the estate of a decedent 1 18 dying on or after July 1, 2020, but before July 1, 2021, there 1 19 shall be imposed a rate of tax equal to the applicable tax rate 1 20 in subsections 1 through 4, reduced by thirty percent, and 1 21 rounded to the nearest one=hundredth of one percent. 1 22 d. In lieu of each rate of tax imposed in subsections 1 1 23 through 4, for property passing from the estate of a decedent 1 24 dying on or after July 1, 2021, but before July 1, 2022, there 1 25 shall be imposed a rate of tax equal to the applicable tax 1 26 rate in subsections 1 through 4, reduced by forty percent, and 1 27 rounded to the nearest one=hundredth of one percent. 1 28 e. In lieu of each rate of tax imposed in subsections 1 1 29 through 4, for property passing from the estate of a decedent 1 30 dying on or after July 1, 2022, but before July 1, 2023, there 1 31 shall be imposed a rate of tax equal to the applicable tax 1 32 rate in subsections 1 through 4, reduced by fifty percent, and 1 33 rounded to the nearest one=hundredth of one percent. 1 34 f. In lieu of each rate of tax imposed in subsections 1 1 35 through 4, for property passing from the estate of a decedent 2 1 dying on or after July 1, 2023, but before July 1, 2024, there 2 2 shall be imposed a rate of tax equal to the applicable tax 2 3 rate in subsections 1 through 4, reduced by sixty percent, and 2 4 rounded to the nearest one=hundredth of one percent. 2 5 g. In lieu of each rate of tax imposed in subsections 1 2 6 through 4, for property passing from the estate of a decedent 2 7 dying on or after July 1, 2024, but before July 1, 2025, there 2 8 shall be imposed a rate of tax equal to the applicable tax rate 2 9 in subsections 1 through 4, reduced by seventy percent, and 2 10 rounded to the nearest one=hundredth of one percent. 2 11 h. In lieu of each rate of tax imposed in subsections 1 2 12 through 4, for property passing from the estate of a decedent 2 13 dying on or after July 1, 2025, but before July 1, 2026, there 2 14 shall be imposed a rate of tax equal to the applicable tax rate 2 15 in subsections 1 through 4, reduced by eighty percent, and 2 16 rounded to the nearest one=hundredth of one percent. 2 17 i. In lieu of each rate of tax imposed in subsections 1 2 18 through 4, for property passing from the estate of a decedent 2 19 dying on or after July 1, 2026, but before July 1, 2027, there 2 20 shall be imposed a rate of tax equal to the applicable tax rate 2 21 in subsections 1 through 4, reduced by ninety percent, and 2 22 rounded to the nearest one=hundredth of one percent. 2 23 Sec. 2. NEW SECTION. 450.98 Tax repealed. 2 24 Effective July 1, 2027, this chapter shall not apply to 2 25 property of estates of decedents dying on or after July 1, 2 26 2027. The inheritance tax shall not be imposed under this 2 27 chapter in the event the decedent dies on or after July 1, 2 28 2027, and, to this extent, this chapter is repealed. 2 29 Sec. 3. NEW SECTION. 450B.8 Tax repealed. 2 30 Effective July 1, 2027, this chapter shall not apply to 2 31 property of estates of decedents dying on or after July 1, 2 32 2027. The qualified use inheritance tax shall not be imposed 2 33 under this chapter in the event the decedent dies on or after 2 34 July 1, 2027, and, to this extent, this chapter is repealed. 2 35 Sec. 4. CODE EDITOR DIRECTIVE. The Code editor is directed 3 1 to remove chapters 450 and 450B from the Code and correct 3 2 appropriate references to chapters 450 and 450B and appropriate 3 3 references to the inheritance tax and qualified use inheritance 3 4 tax effective July 1, 2037. 3 5 EXPLANATION 3 6 The inclusion of this explanation does not constitute agreement with 3 7 the explanation's substance by the members of the general assembly. 3 8 This bill reduces by 90 percent ratably over a nine=year 3 9 fiscal period the rates of tax applicable to the state 3 10 inheritance tax, beginning for estates of decedents dying 3 11 on or after July 1, 2018. The bill then repeals the state 3 12 inheritance tax and the state qualified use inheritance tax 3 13 effective July 1, 2027, for property of estates of decedents 3 14 dying on or after July 1, 2027. Inheritance tax will not 3 15 be imposed on any property in the event of the death of an 3 16 individual on or after July 1, 2027. The bill directs the Code 3 17 editor to remove Code chapters 450 (inheritance tax) and 450B 3 18 (qualified use inheritance tax) from the Code effective July 3 19 1, 2037. LSB 1568XS (2) 87 mm/sc
