House
File
751
-
Introduced
HOUSE
FILE
751
BY
GERHOLD
,
JENEARY
,
THOMPSON
,
GUSTAFSON
,
SHIPLEY
,
and
MOORE
A
BILL
FOR
An
Act
reducing
inheritance
tax
rates,
and
including
effective
1
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
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88
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H.F.
751
Section
1.
Section
450.10,
subsections
1,
2,
3,
and
4,
Code
1
2019,
are
amended
to
read
as
follows:
2
1.
When
the
property
or
any
interest
in
property,
or
3
income
from
property,
taxable
under
the
provisions
of
this
4
chapter
,
passes
to
the
brother
or
sister,
son-in-law,
or
5
daughter-in-law,
the
rate
of
tax
imposed
on
the
individual
6
share
so
passing
shall
be
as
follows:
7
a.
Five
Two
and
one-half
percent
on
any
amount
up
to
twelve
8
thousand
five
hundred
dollars.
9
b.
Six
Three
percent
on
any
amount
in
excess
of
twelve
10
thousand
five
hundred
dollars
and
up
to
twenty-five
thousand
11
dollars.
12
c.
Seven
Three
and
one-half
percent
on
any
amount
in
excess
13
of
twenty-five
thousand
dollars
and
up
to
seventy-five
thousand
14
dollars.
15
d.
Eight
Four
percent
on
any
amount
in
excess
of
16
seventy-five
thousand
dollars
and
up
to
one
hundred
thousand
17
dollars.
18
e.
Nine
Four
and
one-half
percent
on
any
amount
in
excess
19
of
one
hundred
thousand
dollars
and
up
to
one
hundred
fifty
20
thousand
dollars.
21
f.
Ten
Five
percent
on
all
sums
in
excess
of
one
hundred
22
fifty
thousand
dollars.
23
2.
When
the
property
or
interest
in
property
or
income
from
24
property,
taxable
under
this
chapter
,
passes
to
a
person
not
25
included
in
subsections
1
and
6
,
the
rate
of
tax
imposed
on
the
26
individual
share
so
passing
shall
be
as
follows:
27
a.
Ten
Five
percent
on
any
amount
up
to
fifty
thousand
28
dollars.
29
b.
Twelve
Six
percent
on
any
amount
in
excess
of
fifty
30
thousand
dollars
and
up
to
one
hundred
thousand
dollars.
31
c.
Fifteen
Seven
and
one-half
percent
on
all
sums
in
excess
32
of
one
hundred
thousand
dollars.
33
3.
When
the
property
or
any
interest
in
property
or
income
34
from
property,
taxable
under
the
provisions
of
this
chapter
,
35
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passes
in
any
manner
to
societies,
institutions
or
associations
1
incorporated
or
organized
under
the
laws
of
any
other
state,
2
territory,
province
or
country
than
this
state,
for
charitable,
3
educational
or
religious
purposes,
or
to
cemetery
associations,
4
including
humane
societies
not
organized
under
the
laws
of
this
5
state,
or
to
resident
trustees
for
uses
without
this
state,
the
6
rate
of
tax
imposed
shall
be
ten
five
percent
on
the
entire
7
amount
so
passing.
8
4.
When
the
property
or
any
interest
in
property
or
income
9
from
property,
taxable
under
this
chapter
,
passes
to
any
10
firm,
corporation,
or
society
organized
for
profit,
including
11
fraternal
and
social
organizations
which
do
not
qualify
for
12
exemption
under
sections
170(c)
and
2055
of
the
Internal
13
Revenue
Code,
the
rate
of
tax
imposed
shall
be
fifteen
seven
14
and
one-half
percent
on
the
entire
amount
so
passing.
15
Sec.
2.
Section
450.93,
Code
2019,
is
amended
to
read
as
16
follows:
17
450.93
Unknown
heirs.
18
Whenever
the
heirs
or
persons
entitled
to
any
estate
or
19
any
interest
therein
are
unknown
or
their
place
of
residence
20
cannot
with
reasonable
certainty
be
ascertained,
a
tax
of
five
21
two
and
one-half
percent
shall
be
paid
to
the
department
of
22
revenue
upon
all
such
estates
or
interests,
subject
to
refund
23
as
provided
herein
in
other
cases;
provided,
however,
that
if
24
it
be
afterwards
determined
that
any
estate
or
interest
passes
25
to
aliens,
there
shall
be
paid
within
sixty
days
after
such
26
determination
and
before
delivery
of
such
estate
or
property,
27
an
amount
equal
to
the
difference
between
five
two
and
one-half
28
percent,
the
amount
paid,
and
the
amount
which
such
person
29
should
pay
under
the
provisions
of
this
chapter
.
30
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
31
importance,
takes
effect
upon
enactment.
32
Sec.
4.
APPLICABILITY.
This
Act
applies
to
the
estates
of
33
decedents
dying
on
or
after
July
1,
2019.
34
EXPLANATION
35
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
relates
to
inheritance
tax
rates
applied
to
3
decedents
dying
on
or
after
July
1,
2019.
4
The
bill
reduces
each
inheritance
tax
rate
provided
in
Code
5
section
450.10
by
half.
6
The
bill
also
reduces
the
inheritance
tax
rate
for
unknown
7
heirs
provided
in
Code
section
450.93
by
half.
8
The
bill
takes
effect
upon
enactment.
9
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