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 2107YH (2) 88 jm/jh
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 -1- LSB 2107YH (2) 88 jm/jh 1/ 3
H.F. 751 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 -2- LSB 2107YH (2) 88 jm/jh 2/ 3
H.F. 751 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 -3- LSB 2107YH (2) 88 jm/jh 3/ 3