SF 2038 (LSB 5011XS (3) 87)

SENATE FILE 2038

BY  EDLER

A BILL FOR

An Act relating to the repeal of the state inheritance tax and the state qualified use inheritance tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  450.98  Tax repealed.
   This chapter shall not apply, effective July 1, 2018, to property of estates of decedents dying on or after July 1, 2018. The inheritance tax shall not be imposed under this chapter if a decedent dies on or after July 1, 2018, and to this extent this chapter is repealed.
    Sec. 2.  NEW SECTION.  450.99  Future repeal.
   This chapter is repealed effective July 1, 2028.
    Sec. 3.  NEW SECTION.  450B.8  Tax repealed.
   This chapter shall not apply, effective July 1, 2018, to property of estates of decedents dying on or after July 1, 2018. The inheritance tax shall not be imposed under this chapter if a decedent dies on or after July 1, 2018, and to this extent this chapter is repealed.
    Sec. 4.  NEW SECTION.  450B.9  Future repeal.
   This chapter is repealed effective July 1, 2028.
    Sec. 5.  CODE EDITOR DIRECTIVE.  The Code editor is directed to correct internal references and other appropriate references in the Code, and in any enacted Iowa Acts as necessary, to chapters 450 and 450B, and to the inheritance tax and qualified use inheritance tax, effective July 1, 2028.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill repeals the state inheritance tax and the state qualified use inheritance tax effective July 1, 2018, for property of estates of decedents dying on or after July 1, 2018. Inheritance tax will not be imposed on any property in the event of the death of an individual on or after July 1, 2018.
   The bill repeals Code chapters 450 (inheritance tax) and 450B (qualified use inheritance tax) effective July 1, 2028, and directs the Code editor to correct references in the Code and the Iowa Acts to those Code chapters and to the inheritance tax and qualified use inheritance tax, effective July 1, 2028.