House
File
761
-
Introduced
HOUSE
FILE
761
BY
BEARINGER
,
OURTH
,
McCONKEY
,
GASKILL
,
BRECKENRIDGE
,
KURTZ
,
KURTH
,
DERRY
,
HALL
,
GASSMAN
,
MITCHELL
,
KLEIN
,
and
PAUSTIAN
A
BILL
FOR
An
Act
relating
to
inheritance
taxes,
by
providing
for
an
1
exemption,
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2217YH
(4)
88
da/rn
H.F.
761
Section
1.
Section
450.10,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
7.
Agricultural
land,
or
any
associated
3
farmstead,
including
a
dwelling
or
other
structure,
which
is
4
part
of
a
farming
operation
passing
to
a
farm
hand
is
not
5
taxable
under
this
section,
if
for
each
of
the
ten
years
prior
6
to
the
year
in
which
the
decedent
died,
all
of
the
following
7
applied:
8
a.
The
agricultural
land
was
an
eligible
tract
that
was
9
or
could
have
qualified
for
the
family
farm
tax
credit
under
10
chapter
425A.
11
b.
The
decedent
held
a
legal
or
equitable
interest
in
the
12
agricultural
land
and,
for
each
of
those
ten
years,
filed
a
13
schedule
F
as
part
of
a
form
1040
or
form
1041
in
accordance
14
with
regulations
of
the
United
States
internal
revenue
service.
15
c.
The
farming
operation
was
undertaken
for
profit
in
which
16
revenue
was
received
by
any
of
the
following
sources:
17
(1)
The
sale
of
one
or
more
commodities
as
defined
in
18
section
579B.1
that
were
produced
on
the
agricultural
land,
19
including
any
activities
incidental
to
production,
or
the
sale
20
of
products
processed
from
the
commodities,
if
the
products
21
were
processed
on
the
agricultural
land.
22
(2)
Payments
received
from
the
lease
of
the
agricultural
23
land
enrolled
in
the
conservation
reserve
program
as
described
24
in
7
C.F.R.
pt.
1410.
25
d.
The
farm
hand
received
internal
revenue
service
form
W-2
26
wage
and
tax
statements
for
performing
agricultural
labor
on
27
the
agricultural
land
as
part
of
the
farming
operation,
and
28
for
each
of
those
ten
years,
the
farm
hand
worked
more
than
29
one
thousand
two
hundred
hours
in
performing
such
agricultural
30
labor.
As
used
in
this
paragraph,
“agricultural
labor”
means
31
carrying
out
on
a
regular,
continuous,
and
substantial
basis,
32
physical
labor
including
any
related
day-to-day
management
33
decisions
directly
related
to
the
farming
operation.
34
Sec.
2.
APPLICABILITY
DATE.
This
Act
applies
to
estates
of
35
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2
H.F.
761
decedents
dying
on
or
after
July
1,
2019.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
amends
Iowa’s
inheritance
tax
law
in
which
5
property
owned
by
a
person
who
has
died
(any
part
of
the
6
decedent’s
estate)
and
passing
to
an
heir
or
beneficiary,
7
regardless
of
whether
the
decedent
made
a
will,
is
taxed
8
at
a
progressively
higher
rate
based
on
the
value
of
the
9
property.
Several
exemptions
from
the
Iowa
inheritance
law
10
apply,
including
property
passing
to
a
surviving
spouse
or
11
certain
other
family
members
(e.g.,
children
or
grandchildren).
12
The
bill
creates
a
similar
exemption
for
agricultural
land,
13
including
any
associated
farmstead,
which
passes
to
a
farm
14
hand
subject
to
several
eligibility
requirements
for
each
of
15
the
previous
10
years.
The
agricultural
land
must
have
been
16
eligible
for
the
family
farm
tax
credit,
the
decedent
must
17
have
filed
a
schedule
F
as
part
of
a
federal
tax
return,
the
18
agricultural
land
must
have
been
part
of
an
ongoing
farming
19
operation,
and
the
farm
hand
must
have
received
a
wage
or
20
salary
for
performing
agricultural
labor
on
the
agricultural
21
land.
22
The
bill
applies
to
estates
of
decedents
dying
on
or
after
23
July
1,
2019.
24
-2-
LSB
2217YH
(4)
88
da/rn
2/
2