House File 2310 - Introduced HOUSE FILE 2310 BY CHAMBERS A BILL FOR An Act exempting from the inheritance tax any agricultural land 1 passing to nieces or nephews and including an applicability 2 provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5543YH (3) 84 mm/sc

H.F. 2310 Section 1. Section 450.10, subsection 6, Code Supplement 1 2011, is amended to read as follows: 2 6. a. Property, interest in property, or income 3 passing to the surviving spouse, and parents, grandparents, 4 great-grandparents, and other lineal ascendants, children 5 including legally adopted children and biological children 6 entitled to inherit under the laws of this state, stepchildren, 7 and grandchildren, great-grandchildren, and other lineal 8 descendants, is not taxable under this section . 9 b. Agricultural land passing to a niece or nephew is not 10 taxable under this section. For purposes of this paragraph, 11 “agricultural land” means real property owned by a person in 12 tracts of ten acres or more and not laid off into lots of 13 less than ten acres or divided by streets and alleys into 14 parcels of less than ten acres, and that has been used for 15 the production of agricultural commodities during three out 16 of the past five years. Such use of property includes but 17 is not limited to the raising, harvesting, handling, drying, 18 or storage of crops used for feed, food, seed, or fiber; the 19 care or feeding of livestock; the handling or transportation 20 of crops or livestock; the storage, treatment, or disposal 21 of livestock manure; and the application of fertilizers, 22 soil conditioners, pesticides, and herbicides on crops. 23 “Agricultural land” includes land on which is located farm 24 residences or outbuildings used for agricultural purposes and 25 land on which is located facilities, structures, or equipment 26 for agricultural purposes. “Agricultural land” includes 27 land taken out of agricultural production for purposes of 28 environmental protection or preservation. 29 Sec. 2. APPLICABILITY. This Act applies to estates of 30 decedents dying on or after July 1, 2012. 31 EXPLANATION 32 This bill exempts agricultural land passing to a niece 33 or nephew from the inheritance tax. “Agricultural land” is 34 defined in the bill. 35 -1- LSB 5543YH (3) 84 mm/sc 1/ 2

H.F. 2310 The bill applies to estates of decedents dying on or after 1 July 1, 2012. 2 -2- LSB 5543YH (3) 84 mm/sc 2/ 2