House File 841 - Introduced HOUSE FILE 841 BY BLOOMINGDALE , GERHOLD , THOMPSON , and HITE A BILL FOR An Act increasing the size of an estate exempt from the state 1 inheritance tax, and establishing a future repeal of the 2 state inheritance tax. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2604YH (4) 89 jm/jh

H.F. 841 DIVISION I 1 STATE INHERITANCE TAX —— EXEMPTION 2 Section 1. Section 450.4, subsection 1, Code 2021, is 3 amended to read as follows: 4 1. When the entire estate of the decedent does not exceed 5 the sum of twenty-five thousand dollars of the following 6 amounts after deducting the liabilities, as defined in this 7 chapter : 8 a. For decedents dying on or after July 1, 2021, but before 9 July 1, 2022, three hundred thousand dollars . 10 b. For decedents dying on or after July 1, 2022, but before 11 July 1, 2023, six hundred thousand dollars. 12 c. For decedents dying on or after July 1, 2023, but before 13 July 1, 2024, one million dollars. 14 DIVISION II 15 REPEAL OF STATE INHERITANCE TAX 16 Sec. 2. NEW SECTION . 450.98 Tax repealed. 17 This chapter shall not apply, effective July 1, 2024, to 18 property of estates of decedents dying on or after July 1, 19 2024. The inheritance tax shall not be imposed under this 20 chapter if a decedent dies on or after July 1, 2024, and to this 21 extent this chapter is repealed. 22 Sec. 3. NEW SECTION . 450.99 Future repeal. 23 This chapter is repealed effective July 1, 2034. 24 Sec. 4. NEW SECTION . 450B.8 Tax repealed. 25 This chapter shall not apply, effective July 1, 2024, to 26 property of estates of decedents dying on or after July 1, 27 2024. The inheritance tax shall not be imposed under this 28 chapter if a decedent dies on or after July 1, 2024, and to this 29 extent this chapter is repealed. 30 Sec. 5. NEW SECTION . 450B.9 Future repeal. 31 This chapter is repealed effective July 1, 2034. 32 Sec. 6. CODE EDITOR DIRECTIVE. The Code editor is directed 33 to correct internal references and other appropriate references 34 in the Code, and in any enacted Iowa Acts as necessary, to 35 -1- LSB 2604YH (4) 89 jm/jh 1/ 2

H.F. 841 chapters 450 and 450B, and to the inheritance tax and qualified 1 use inheritance tax, effective July 1, 2034. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill increases the size of an estate exempted from the 6 state inheritance tax, and establishes a future repeal of the 7 state inheritance tax. 8 The bill increases the size of an estate exempt from the 9 state inheritance tax from $25,000 to $300,000 for decedents 10 dying on or after July 1, 2021, but before July 1, 2022, from 11 $300,000 to $600,000, for decedents dying on or after July 1, 12 2022, but before July 1, 2023, and from $600,000 to $1 million, 13 for decedents dying on or after July 1, 2023, but before July 14 1, 2024. 15 For decedents dying on or after July 1, 2024, the bill 16 repeals the state inheritance tax. The bill repeals Code 17 chapters 450 (inheritance tax) and 450B (qualified use 18 inheritance tax), effective July 1, 2034, and directs the Code 19 editor to correct references in the Code and the Iowa Acts, to 20 those Code chapters. 21 -2- LSB 2604YH (4) 89 jm/jh 2/ 2