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Senate Study Bill 1.1

Bill Text

PAG LIN
  1  1    Section 1.  Section 450.7, subsection 1, unnumbered
  1  2 paragraph 1, Code 1997, 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, great-
  1  8 grandchildren, and other lineal descendants, the tax is a
  1  9 charge against and a lien upon the estate subject to tax under
  1 10 this chapter, and all property of the estate or owned by the
  1 11 decedent from the death of the decedent until paid, subject to
  1 12 the following limitation:
  1 13    Sec. 2.  Section 450.9, Code 1997, is amended by striking
  1 14 the section and inserting in lieu thereof the following:
  1 15    450.9  INDIVIDUAL EXEMPTIONS.
  1 16    In computing the tax on the net estate, the entire amount
  1 17 of property, interest in property, and income passing to the
  1 18 surviving spouse, and parents, grandparents, great-
  1 19 grandparents, and other lineal ascendants, children including
  1 20 legally adopted children and biological children entitled to
  1 21 inherit under the laws of this state, stepchildren, and
  1 22 grandchildren, great-grandchildren, and other lineal
  1 23 descendants are exempt from tax.
  1 24    Sec. 3.  Section 450.10, subsection 1, Code 1997, is
  1 25 amended by striking the subsection.
  1 26    Sec. 4.  Section 450.10, subsection 2, unnumbered paragraph
  1 27 1, Code 1997, is amended to read as follows:
  1 28    When the property or any interest therein in property, or
  1 29 income therefrom from property taxable under the provisions of
  1 30 this chapter passes to the brother or sister, son-in-law, or
  1 31 daughter-in-law, or step-children, the rate of tax imposed on
  1 32 the individual share so passing shall be as follows:
  1 33    Sec. 5.  Section 450.10, subsection 3, unnumbered paragraph
  1 34 1, Code 1997, is amended to read as follows:
  1 35    When the property or interest in property or income from
  2  1 property, taxable under this chapter, passes to a person not
  2  2 included in subsections 1, 2, and 7, the rate of tax imposed
  2  3 on the individual share so passing shall be as follows:
  2  4    Sec. 6.  Section 450.10, subsection 6, Code 1997, is
  2  5 amended to read as follows:
  2  6    6.  When the property or any interest therein in property,
  2  7 or income therefrom from property, taxable under the
  2  8 provisions of this chapter passes to any person included under
  2  9 subsection 1 or 2 hereof, there shall be credited to the tax
  2 10 imposed on the individual share so passing an amount equal to
  2 11 the tax imposed in this state on the decedent on any property,
  2 12 real, personal or mixed, or the proportionate share thereof on
  2 13 property passing to the person taxed hereunder, which can be
  2 14 identified as having been received by the decedent as a share
  2 15 in the estate of any person who died within two years prior to
  2 16 the death of the decedent, or which can be identified as
  2 17 having been acquired by the decedent in exchange for property
  2 18 so received.  The credit shall not be applicable to taxes on
  2 19 property of the decedent which was not acquired from the prior
  2 20 estate.
  2 21    Sec. 7.  Section 450.10, subsection 7, Code 1997, is
  2 22 amended to read as follows:
  2 23    7.  Property, interest in property, or income passing to
  2 24 the surviving spouse, and parents, grandparents, great-
  2 25 grandparents, and other lineal ascendants, children including
  2 26 legally adopted children and biological children entitled to
  2 27 inherit under the laws of this state, stepchildren, and
  2 28 grandchildren, great-grandchildren, and other lineal
  2 29 descendants, is not taxable under this section.
  2 30    Sec. 8.  This Act applies to estates of decedents dying on
  2 31 or after July 1, 1997.  
  2 32                           EXPLANATION
  2 33    The bill eliminates the inheritance tax on property of
  2 34 decedents dying on or after July 1, 1997, passing to parents,
  2 35 grandparents, great-grandparents, and other lineal ascendants,
  3  1 children including adopted children and biological children
  3  2 entitled to inherit under the laws of this state,
  3  3 stepchildren, and grandchildren, great-grandchildren, and
  3  4 other lineal descendants.  
  3  5 LSB 1672SC 77
  3  6 mg/cf/24.1
     

                                        
Text: SSB00000 - SSB00099               Text: SSB Index
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