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PAG LIN
20 SENATE FILE 35
30
50 AN ACT
52 MARGINS F
54 ELIMINATING THE INHERITANCE TAX ON PROPERTY PASSING TO
60 PARENTS, GRANDPARENTS, GREAT-GRANDPARENTS, AND OTHER LINEAL
70 ASCENDANTS, CHILDREN INCLUDING LEGALLY ADOPTED CHILDREN AND
80 BIOLOGICAL CHILDREN ENTITLED TO INHERIT UNDER THE LAWS OF THIS
90 STATE, STEPCHILDREN, AND GRANDCHILDREN, GREAT-GRANDCHILDREN,
100 AND OTHER LINEAL DESCENDANTS OF THE DECEDENT AND PROVIDING AN
110 APPLICABILITY DATE PROVISION.
112
130 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
140
180 Section 1. Section 450.7, subsection 1, unnumbered
190 paragraph 1, Code 1997, is amended to read as follows:
200 Except for the share of the estate passing to the surviving
210 spouse, and parents, grandparents, great-grandparents, and
220 other lineal ascendants, children including legally adopted
230 children and biological children entitled to inherit under the
240 laws of this state, stepchildren, and grandchildren, great-
250 grandchildren, and other lineal descendants, the tax is a
260 charge against and a lien upon the estate subject to tax under
270 this chapter, and all property of the estate or owned by the
280 decedent from the death of the decedent until paid, subject to
290 the following limitation:
300 Sec. 2. Section 450.9, Code 1997, is amended by striking
310 the section and inserting in lieu thereof the following:
320 450.9 INDIVIDUAL EXEMPTIONS.
330 In computing the tax on the net estate, the entire amount
340 of property, interest in property, and income passing to the
350 surviving spouse, and parents, grandparents, great-
360 grandparents, and other lineal ascendants, children including
370 legally adopted children and biological children entitled to
380 inherit under the laws of this state, stepchildren, and
390 grandchildren, great-grandchildren, and other lineal
400 descendants are exempt from tax.
410 Sec. 3. Section 450.10, subsection 1, Code 1997, is
420 amended by striking the subsection.
430 Sec. 4. Section 450.10, subsection 2, unnumbered paragraph
440 1, Code 1997, is amended to read as follows:
450 When the property or any interest therein in property, or
460 income therefrom from property taxable under the provisions of
470 this chapter passes to the brother or sister, son-in-law, or
480 daughter-in-law, or step-children, the rate of tax imposed on
490 the individual share so passing shall be as follows:
500 Sec. 5. Section 450.10, subsection 3, unnumbered paragraph
510 1, Code 1997, is amended to read as follows:
520 When the property or interest in property or income from
530 property, taxable under this chapter, passes to a person not
540 included in subsections 1, 2, and 7, the rate of tax imposed
550 on the individual share so passing shall be as follows:
560 Sec. 6. Section 450.10, subsection 6, Code 1997, is
570 amended to read as follows:
580 6. When the property or any interest therein in property,
590 or income therefrom from property, taxable under the
600 provisions of this chapter passes to any person included under
610 subsection 1 or 2 hereof, there shall be credited to the tax
620 imposed on the individual share so passing an amount equal to
630 the tax imposed in this state on the decedent on any property,
640 real, personal or mixed, or the proportionate share thereof on
650 property passing to the person taxed hereunder, which can be
660 identified as having been received by the decedent as a share
670 in the estate of any person who died within two years prior to
680 the death of the decedent, or which can be identified as
690 having been acquired by the decedent in exchange for property
700 so received. The credit shall not be applicable to taxes on
710 property of the decedent which was not acquired from the prior
720 estate.
730 Sec. 7. Section 450.10, subsection 7, Code 1997, is
740 amended to read as follows:
750 7. Property, interest in property, or income passing to
760 the surviving spouse, and parents, grandparents, great-
770 grandparents, and other lineal ascendants, children including
780 legally adopted children and biological children entitled to
790 inherit under the laws of this state, stepchildren, and
800 grandchildren, great-grandchildren, and other lineal
810 descendants, is not taxable under this section.
820 Sec. 8. This Act applies to estates of decedents dying on
830 or after July 1, 1997.
850
860
870
880 MARY E. KRAMER
890 President of the Senate
900
910
920
930 RON J. CORBETT
940 Speaker of the House
950
960 I hereby certify that this bill originated in the Senate and
970 is known as Senate File 35, Seventy-seventh General Assembly.
980
990
1000
1010 MARY PAT GUNDERSON
1020 Secretary of the Senate
1030 Approved , 1997
1040
1050
1060
1070 TERRY E. BRANSTAD
1080 Governor
Text: SF00034 Text: SF00036 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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