Senate File 354 - Introduced

SENATE FILE  	 BY	McCOY

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

A BILL FOR

An Act eliminating the inheritance tax on property passing to
siblings of the decedent and including an applicability date
provision.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2309SS 83
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:
35	6.	Property, interest in property, or income passing to
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	8	section.		
2	9	Sec. 5.	APPLICABILITY DATE.	This Act applies to estates	

  2  7 stepbrothers, and stepsisters, is not taxable under this

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