House File 841 - IntroducedA Bill ForAn Act 1increasing the size of an estate exempt from the state
2inheritance tax, and establishing a future repeal of the
3state inheritance tax.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2STATE INHERITANCE TAX — EXEMPTION
3   Section 1.  Section 450.4, subsection 1, Code 2021, is
4amended to read as follows:
   51.  When the entire estate of the decedent does not exceed
6the sum of twenty-five thousand dollars of the following
7amounts
after deducting the liabilities, as defined in this
8chapter:
   9a.  For decedents dying on or after July 1, 2021, but before
10July 1, 2022, three hundred thousand dollars
.
   11b.  For decedents dying on or after July 1, 2022, but before
12July 1, 2023, six hundred thousand dollars.
   13c.  For decedents dying on or after July 1, 2023, but before
14July 1, 2024, one million dollars.
15DIVISION II
16REPEAL OF STATE INHERITANCE TAX
17   Sec. 2.  NEW SECTION.  450.98  Tax repealed.
   18This chapter shall not apply, effective July 1, 2024, to
19property of estates of decedents dying on or after July 1,
202024. The inheritance tax shall not be imposed under this
21chapter if a decedent dies on or after July 1, 2024, and to this
22extent this chapter is repealed.
23   Sec. 3.  NEW SECTION.  450.99  Future repeal.
   24This chapter is repealed effective July 1, 2034.
25   Sec. 4.  NEW SECTION.  450B.8  Tax repealed.
   26This chapter shall not apply, effective July 1, 2024, to
27property of estates of decedents dying on or after July 1,
282024. The inheritance tax shall not be imposed under this
29chapter if a decedent dies on or after July 1, 2024, and to this
30extent this chapter is repealed.
31   Sec. 5.  NEW SECTION.  450B.9  Future repeal.
   32This chapter is repealed effective July 1, 2034.
33   Sec. 6.  CODE EDITOR DIRECTIVE.  The Code editor is directed
34to correct internal references and other appropriate references
35in the Code, and in any enacted Iowa Acts as necessary, to
-1-1chapters 450 and 450B, and to the inheritance tax and qualified
2use inheritance tax, effective July 1, 2034.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
   6This bill increases the size of an estate exempted from the
7state inheritance tax, and establishes a future repeal of the
8state inheritance tax.
   9The bill increases the size of an estate exempt from the
10state inheritance tax from $25,000 to $300,000 for decedents
11dying on or after July 1, 2021, but before July 1, 2022, from
12$300,000 to $600,000, for decedents dying on or after July 1,
132022, but before July 1, 2023, and from $600,000 to $1 million,
14for decedents dying on or after July 1, 2023, but before July
151, 2024.
   16For decedents dying on or after July 1, 2024, the bill
17repeals the state inheritance tax. The bill repeals Code
18chapters 450 (inheritance tax) and 450B (qualified use
19inheritance tax), effective July 1, 2034, and directs the Code
20editor to correct references in the Code and the Iowa Acts, to
21those Code chapters.
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