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House File 751 - IntroducedA Bill ForAn Act 1reducing inheritance tax rates, and including effective
2date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 450.10, subsections 1, 2, 3, and 4, Code
22019, are amended to read as follows:
31. When the property or any interest in property, or
4income from property, taxable under the provisions of this
5chapter, passes to the brother or sister, son-in-law, or
6daughter-in-law, the rate of tax imposed on the individual
7share so passing shall be as follows:
8a. Five Two and one-half percent on any amount up to twelve
9thousand five hundred dollars.
10b. Six Three percent on any amount in excess of twelve
11thousand five hundred dollars and up to twenty-five thousand
12dollars.
13c. Seven Three and one-half percent on any amount in excess
14of twenty-five thousand dollars and up to seventy-five thousand
15dollars.
16d. Eight Four percent on any amount in excess of
17seventy-five thousand dollars and up to one hundred thousand
18dollars.
19e. Nine Four and one-half percent on any amount in excess
20of one hundred thousand dollars and up to one hundred fifty
21thousand dollars.
22f. Ten Five percent on all sums in excess of one hundred
23fifty thousand dollars.
242. When the property or interest in property or income from
25property, taxable under this chapter, passes to a person not
26included in subsections 1 and 6, the rate of tax imposed on the
27individual share so passing shall be as follows:
28a. Ten Five percent on any amount up to fifty thousand
29dollars.
30b. Twelve Six percent on any amount in excess of fifty
31thousand dollars and up to one hundred thousand dollars.
32c. Fifteen Seven and one-half percent on all sums in excess
33of one hundred thousand dollars.
343. When the property or any interest in property or income
35from property, taxable under the provisions of this chapter,
-1-1passes in any manner to societies, institutions or associations
2incorporated or organized under the laws of any other state,
3territory, province or country than this state, for charitable,
4educational or religious purposes, or to cemetery associations,
5including humane societies not organized under the laws of this
6state, or to resident trustees for uses without this state, the
7rate of tax imposed shall be ten five percent on the entire
8amount so passing.
94. When the property or any interest in property or income
10from property, taxable under this chapter, passes to any
11firm, corporation, or society organized for profit, including
12fraternal and social organizations which do not qualify for
13exemption under sections 170(c) and 2055 of the Internal
14Revenue Code, the rate of tax imposed shall be fifteen seven
15and one-half percent on the entire amount so passing.
16 Sec. 2. Section 450.93, Code 2019, is amended to read as
17follows:
18450.93 Unknown heirs.
19Whenever the heirs or persons entitled to any estate or
20any interest therein are unknown or their place of residence
21cannot with reasonable certainty be ascertained, a tax of five
22 two and one-half percent shall be paid to the department of
23revenue upon all such estates or interests, subject to refund
24as provided herein in other cases; provided, however, that if
25it be afterwards determined that any estate or interest passes
26to aliens, there shall be paid within sixty days after such
27determination and before delivery of such estate or property,
28an amount equal to the difference between five two and one-half
29 percent, the amount paid, and the amount which such person
30should pay under the provisions of this chapter.
31 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
32importance, takes effect upon enactment.
33 Sec. 4. APPLICABILITY. This Act applies to the estates of
34decedents dying on or after July 1, 2019.
35EXPLANATION
-2-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to inheritance tax rates applied to
4decedents dying on or after July 1, 2019.
5The bill reduces each inheritance tax rate provided in Code
6section 450.10 by half.
7The bill also reduces the inheritance tax rate for unknown
8heirs provided in Code section 450.93 by half.
9The bill takes effect upon enactment.
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2date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 450.10, subsections 1, 2, 3, and 4, Code
22019, are amended to read as follows:
31. When the property or any interest in property, or
4income from property, taxable under the provisions of this
5chapter, passes to the brother or sister, son-in-law, or
6daughter-in-law, the rate of tax imposed on the individual
7share so passing shall be as follows:
8a. Five Two and one-half percent on any amount up to twelve
9thousand five hundred dollars.
10b. Six Three percent on any amount in excess of twelve
11thousand five hundred dollars and up to twenty-five thousand
12dollars.
13c. Seven Three and one-half percent on any amount in excess
14of twenty-five thousand dollars and up to seventy-five thousand
15dollars.
16d. Eight Four percent on any amount in excess of
17seventy-five thousand dollars and up to one hundred thousand
18dollars.
19e. Nine Four and one-half percent on any amount in excess
20of one hundred thousand dollars and up to one hundred fifty
21thousand dollars.
22f. Ten Five percent on all sums in excess of one hundred
23fifty thousand dollars.
242. When the property or interest in property or income from
25property, taxable under this chapter, passes to a person not
26included in subsections 1 and 6, the rate of tax imposed on the
27individual share so passing shall be as follows:
28a. Ten Five percent on any amount up to fifty thousand
29dollars.
30b. Twelve Six percent on any amount in excess of fifty
31thousand dollars and up to one hundred thousand dollars.
32c. Fifteen Seven and one-half percent on all sums in excess
33of one hundred thousand dollars.
343. When the property or any interest in property or income
35from property, taxable under the provisions of this chapter,
-1-1passes in any manner to societies, institutions or associations
2incorporated or organized under the laws of any other state,
3territory, province or country than this state, for charitable,
4educational or religious purposes, or to cemetery associations,
5including humane societies not organized under the laws of this
6state, or to resident trustees for uses without this state, the
7rate of tax imposed shall be ten five percent on the entire
8amount so passing.
94. When the property or any interest in property or income
10from property, taxable under this chapter, passes to any
11firm, corporation, or society organized for profit, including
12fraternal and social organizations which do not qualify for
13exemption under sections 170(c) and 2055 of the Internal
14Revenue Code, the rate of tax imposed shall be fifteen seven
15and one-half percent on the entire amount so passing.
16 Sec. 2. Section 450.93, Code 2019, is amended to read as
17follows:
18450.93 Unknown heirs.
19Whenever the heirs or persons entitled to any estate or
20any interest therein are unknown or their place of residence
21cannot with reasonable certainty be ascertained, a tax of five
22 two and one-half percent shall be paid to the department of
23revenue upon all such estates or interests, subject to refund
24as provided herein in other cases; provided, however, that if
25it be afterwards determined that any estate or interest passes
26to aliens, there shall be paid within sixty days after such
27determination and before delivery of such estate or property,
28an amount equal to the difference between five two and one-half
29 percent, the amount paid, and the amount which such person
30should pay under the provisions of this chapter.
31 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
32importance, takes effect upon enactment.
33 Sec. 4. APPLICABILITY. This Act applies to the estates of
34decedents dying on or after July 1, 2019.
35EXPLANATION
-2-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to inheritance tax rates applied to
4decedents dying on or after July 1, 2019.
5The bill reduces each inheritance tax rate provided in Code
6section 450.10 by half.
7The bill also reduces the inheritance tax rate for unknown
8heirs provided in Code section 450.93 by half.
9The bill takes effect upon enactment.
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