House
File
887
-
Introduced
HOUSE
FILE
887
BY
GERHOLD
and
THOMPSON
A
BILL
FOR
An
Act
relating
to
exemptions
to
the
state
inheritance
tax
of
1
estates,
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2237HH
(5)
89
jm/jh
H.F.
887
Section
1.
Section
450.1,
subsection
1,
Code
2021,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0b.
“Family
members”
means
brothers,
3
sisters,
stepbrothers,
stepsisters,
first
or
second
cousins,
4
first
or
second
stepcousins,
nieces,
nephews,
and
their
lineal
5
descendants.
6
Sec.
2.
Section
450.7,
subsection
1,
paragraph
a,
Code
2021,
7
is
amended
to
read
as
follows:
8
a.
The
share
of
the
estate
passing
to
the
surviving
spouse,
9
and
parents,
grandparents,
great-grandparents,
and
other
lineal
10
ascendants,
children
including
legally
adopted
children
and
11
biological
children
entitled
to
inherit
under
the
laws
of
this
12
state,
stepchildren,
and
grandchildren,
great-grandchildren,
13
family
members,
and
other
lineal
descendants
is
excluded
from
14
taxation
under
this
chapter
.
15
Sec.
3.
Section
450.9,
Code
2021,
is
amended
to
read
as
16
follows:
17
450.9
Individual
exemptions.
18
In
computing
the
tax
on
the
net
estate,
the
entire
amount
19
of
property,
interest
in
property,
and
income
passing
to
the
20
surviving
spouse,
lineal
ascendants,
lineal
descendants,
and
21
stepchildren
and
their
lineal
descendants
,
and
family
members
22
are
exempt
from
tax.
“Lineal
descendants”
includes
descendants
23
by
adoption.
24
Sec.
4.
Section
450.10,
subsection
1,
unnumbered
paragraph
25
1,
Code
2021,
is
amended
to
read
as
follows:
26
When
the
property
or
any
interest
in
property,
or
income
from
27
property,
taxable
under
the
provisions
of
this
chapter
,
passes
28
to
the
brother
or
sister,
son-in-law
,
or
daughter-in-law,
the
29
rate
of
tax
imposed
on
the
individual
share
so
passing
shall
30
be
as
follows:
31
Sec.
5.
Section
450.10,
subsection
6,
Code
2021,
is
amended
32
to
read
as
follows:
33
6.
Property,
interest
in
property,
or
income
passing
34
to
the
surviving
spouse,
and
parents,
grandparents,
35
-1-
LSB
2237HH
(5)
89
jm/jh
1/
2
H.F.
887
great-grandparents,
and
other
lineal
ascendants,
children
1
including
legally
adopted
children
and
biological
children
2
entitled
to
inherit
under
the
laws
of
this
state,
stepchildren,
3
and
grandchildren,
great-grandchildren,
family
members,
and
4
other
lineal
descendants,
is
not
taxable
under
this
section
.
5
Sec.
6.
APPLICABILITY.
This
Act
applies
to
estates
of
6
decedents
dying
on
or
after
July
1,
2021.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
expands
the
state
inheritance
tax
exemption
by
11
including
estates
passing
to
certain
family
members.
The
bill
12
defines
“family
members”.
Currently,
estates
passing
to
lineal
13
ascendants
and
lineal
descendants
are
exempt
from
the
state
14
inheritance
tax.
15
The
bill
applies
to
estates
of
decedents
dying
on
or
after
16
July
1,
2021.
17
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2237HH
(5)
89
jm/jh
2/
2