Bill Text: IA HF2436 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act exempting from the inheritance tax a certain amount of property passing to brothers, sisters, uncles, aunts, first cousins, nieces, and nephews and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-03-21 - Subcommittee, Helland, Sands, and Willems. H.J. 629. [HF2436 Detail]
Download: Iowa-2011-HF2436-Introduced.html
House
File
2436
-
Introduced
HOUSE
FILE
2436
BY
HALL
A
BILL
FOR
An
Act
exempting
from
the
inheritance
tax
a
certain
amount
of
1
property
passing
to
brothers,
sisters,
uncles,
aunts,
first
2
cousins,
nieces,
and
nephews
and
including
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5740HH
(3)
84
mm/sc
H.F.
2436
Section
1.
Section
450.9,
Code
2011,
is
amended
to
read
as
1
follows:
2
450.9
Individual
exemptions.
3
1.
In
computing
the
tax
on
the
net
estate,
the
entire
4
amount
of
property,
interest
in
property,
and
income
5
passing
to
the
surviving
spouse,
and
parents,
grandparents,
6
great-grandparents,
and
other
lineal
ascendants,
children
7
including
legally
adopted
children
and
biological
children
8
entitled
to
inherit
under
the
laws
of
this
state,
stepchildren,
9
and
grandchildren,
great-grandchildren,
and
other
lineal
10
descendants
are
exempt
from
tax.
11
2.
In
computing
the
tax
on
the
net
estate,
the
first
one
12
million
dollars
in
the
aggregate
of
property,
interest
in
13
property,
and
income
passing
to
brothers,
sisters,
uncles,
14
aunts,
first
cousins,
nieces,
and
nephews,
is
exempt
from
tax.
15
If
the
entire
amount
of
property,
interest
in
property,
and
16
income
passing
to
all
persons
listed
in
this
subsection
exceeds
17
one
million
dollars,
the
exemption
shall
be
apportioned
among
18
the
persons
according
to
each
person’s
proportionate
share
of
19
the
entire
amount
of
property,
interest
in
property,
and
income
20
passing
to
all
persons
listed
in
this
subsection.
21
Sec.
2.
Section
450.10,
subsection
1,
unnumbered
paragraph
22
1,
Code
Supplement
2011,
is
amended
to
read
as
follows:
23
When
the
property
or
any
interest
in
property,
or
income
from
24
property,
taxable
under
the
provisions
of
this
chapter
,
passes
25
to
the
brother
or
sister
,
in
excess
of
the
amounts
exempted
by
26
operation
of
subsection
7,
the
son-in-law,
or
daughter-in-law,
27
the
rate
of
tax
imposed
on
the
individual
share
so
passing
28
shall
be
as
follows:
29
Sec.
3.
Section
450.10,
subsection
2,
unnumbered
paragraph
30
1,
Code
Supplement
2011,
is
amended
to
read
as
follows:
31
When
the
property
or
interest
in
property
or
income
from
32
property,
taxable
under
this
chapter
,
passes
to
a
person
not
33
included
in
subsections
1
and
6
,
or
to
a
person
included
in
34
subsection
7,
other
than
a
brother
or
sister,
in
excess
of
the
35
-1-
LSB
5740HH
(3)
84
mm/sc
1/
3
H.F.
2436
amounts
exempted
by
operation
of
that
subsection,
the
rate
of
1
tax
imposed
on
the
individual
share
so
passing
shall
be
as
2
follows:
3
Sec.
4.
Section
450.10,
subsection
5,
Code
Supplement
2011,
4
is
amended
to
read
as
follows:
5
5.
When
the
property
or
any
interest
in
property,
or
income
6
from
property,
taxable
under
this
chapter
,
passes
to
any
person
7
included
under
subsection
1
,
there
shall
be
credited
to
the
tax
8
imposed
on
the
individual
share
so
passing
an
amount
equal
to
9
the
tax
imposed
in
this
state
on
the
decedent
on
any
property,
10
real,
personal
or
mixed,
or
the
proportionate
share
thereof
on
11
property
passing
to
the
person
taxed
hereunder,
which
can
be
12
identified
as
having
been
received
by
the
decedent
as
a
share
13
in
the
estate
of
any
person
who
died
within
two
years
prior
14
to
the
death
of
the
decedent,
or
which
can
be
identified
as
15
having
been
acquired
by
the
decedent
in
exchange
for
property
16
so
received.
The
credit
shall
not
be
applicable
to
taxes
on
17
property
of
the
decedent
which
was
not
acquired
from
the
prior
18
estate
,
or
taxes
on
property
of
the
decedent
otherwise
exempt
19
from
taxation
under
subsection
7
.
20
Sec.
5.
Section
450.10,
Code
Supplement
2011,
is
amended
by
21
adding
the
following
new
subsection:
22
NEW
SUBSECTION
.
7.
The
first
one
million
dollars
in
the
23
aggregate
of
property,
interest
in
property,
or
income
passing
24
to
brothers,
sisters,
uncles,
aunts,
first
cousins,
nieces,
25
and
nephews,
is
not
taxable
under
this
section.
If
the
entire
26
amount
of
property,
interest
in
property,
and
income
passing
27
to
all
persons
listed
in
this
subsection
exceeds
one
million
28
dollars,
the
exemption
shall
be
apportioned
among
the
persons
29
according
to
each
person’s
proportionate
share
of
the
entire
30
amount
of
property,
interest
in
property,
and
income
passing
to
31
all
persons
listed
in
this
subsection.
32
Sec.
6.
APPLICABILITY.
This
Act
applies
to
estates
of
33
decedents
dying
on
or
after
July
1,
2012.
34
EXPLANATION
35
-2-
LSB
5740HH
(3)
84
mm/sc
2/
3
H.F.
2436
This
bill
exempts
the
first
$1
million
in
the
aggregate
of
1
property
passing
to
brothers,
sisters,
uncles,
aunts,
first
2
cousins,
nieces,
and
nephews,
from
the
inheritance
tax.
If
the
3
total
property
passing
to
these
persons
exceeds
$1
million,
the
4
exemption
is
apportioned
among
the
persons
according
to
their
5
proportionate
share
of
the
property.
6
The
bill
also
provides
that
the
credit
for
prior
inheritance
7
tax
paid
by
the
decedent
on
property
passing
to
a
brother,
8
sister,
son-in-law,
or
daughter-in-law,
shall
not
be
applicable
9
to
the
amounts
passing
to
a
brother
or
sister
that
are
10
otherwise
exempted
from
tax
in
the
bill.
11
The
bill
applies
to
estates
of
decedents
dying
on
or
after
12
July
1,
2012.
13
-3-
LSB
5740HH
(3)
84
mm/sc
3/
3
