Senate File 354 - Introduced





                                       SENATE FILE       
                                       BY  McCOY


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act eliminating the inheritance tax on property passing to
  2    siblings of the decedent and including an applicability date
  3    provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2309SS 83
  6 mg/rj/14

PAG LIN



  1  1    Section 1.  Section 450.7, subsection 1, unnumbered
  1  2 paragraph 1, Code 2009, is amended to read as follows:
  1  3    Except for the share of the estate passing to the surviving
  1  4 spouse, and parents, grandparents, great=grandparents, and
  1  5 other lineal ascendants, children including legally adopted
  1  6 children and biological children entitled to inherit under the
  1  7 laws of this state, stepchildren, and grandchildren,
  1  8 great=grandchildren, and other lineal descendants, and passing
  1  9 to brothers, sisters, stepbrothers, and stepsisters, the tax
  1 10 is a charge against and a lien upon the estate subject to tax
  1 11 under this chapter, and all property of the estate or owned by
  1 12 the decedent from the death of the decedent until paid,
  1 13 subject to the following limitation:
  1 14    Sec. 2.  Section 450.9, Code 2009, is amended to read as
  1 15 follows:
  1 16    450.9  INDIVIDUAL EXEMPTIONS.
  1 17    In computing the tax on the net estate, the entire amount
  1 18 of property, interest in property, and income passing to the
  1 19 surviving spouse, and parents, grandparents,
  1 20 great=grandparents, and other lineal ascendants, children
  1 21 including legally adopted children and biological children
  1 22 entitled to inherit under the laws of this state,
  1 23 stepchildren, and grandchildren, great=grandchildren, and
  1 24 other lineal descendants, and passing to brothers, sisters,
  1 25 stepbrothers, and stepsisters are exempt from tax.
  1 26    Sec. 3.  Section 450.10, subsection 1, unnumbered paragraph
  1 27 1, Code 2009, is amended to read as follows:
  1 28    When the property or any interest in property, or income
  1 29 from property, taxable under the provisions of this chapter,
  1 30 passes to the brother or sister, son=in=law, or
  1 31 daughter=in=law, the rate of tax imposed on the individual
  1 32 share so passing shall be as follows:
  1 33    Sec. 4.  Section 450.10, subsection 6, Code 2009, is
  1 34 amended to read as follows:
  1 35    6.  Property, interest in property, or income passing to
  2  1 the surviving spouse, and parents, grandparents,
  2  2 great=grandparents, and other lineal ascendants, children
  2  3 including legally adopted children and biological children
  2  4 entitled to inherit under the laws of this state,
  2  5 stepchildren, and grandchildren, great=grandchildren, and
  2  6 other lineal descendants, and passing to brothers, sisters,
  2  7 stepbrothers, and stepsisters, is not taxable under this
  2  8 section.
  2  9    Sec. 5.  APPLICABILITY DATE.  This Act applies to estates
  2 10 of decedents dying on or after the effective date.
  2 11                           EXPLANATION
  2 12    This bill exempts from the inheritance tax property,
  2 13 interest in property, or income passing to individuals who are
  2 14 brothers, sisters, stepbrothers, and stepsisters of the
  2 15 decedent.
  2 16    The bill applies to estates of decedents dying on or after
  2 17 the effective date.
  2 18 LSB 2309SS 83
  2 19 mg/rj/14