Bill Text: IA SF39 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act reducing the state inheritance tax rates and providing for the future repeal of the state inheritance tax and state qualified use inheritance tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-02-05 - Subcommittee reassigned: Chapman, Bolkcom, and Edler. S.J. 217. [SF39 Detail]
Download: Iowa-2019-SF39-Introduced.html
Senate
File
39
-
Introduced
SENATE
FILE
39
BY
ZAUN
A
BILL
FOR
An
Act
reducing
the
state
inheritance
tax
rates
and
providing
1
for
the
future
repeal
of
the
state
inheritance
tax
and
state
2
qualified
use
inheritance
tax.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
450.10,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
7.
a.
In
lieu
of
each
rate
of
tax
imposed
3
in
subsections
1
through
4,
for
property
passing
from
the
4
estate
of
a
decedent
dying
on
or
after
July
1,
2019,
but
before
5
July
1,
2020,
there
shall
be
imposed
a
rate
of
tax
equal
to
6
the
applicable
tax
rate
in
subsections
1
through
4,
reduced
by
7
ten
percent,
and
rounded
to
the
nearest
one-hundredth
of
one
8
percent.
9
b.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
10
through
4,
for
property
passing
from
the
estate
of
a
decedent
11
dying
on
or
after
July
1,
2020,
but
before
July
1,
2021,
there
12
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
rate
13
in
subsections
1
through
4,
reduced
by
twenty
percent,
and
14
rounded
to
the
nearest
one-hundredth
of
one
percent.
15
c.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
16
through
4,
for
property
passing
from
the
estate
of
a
decedent
17
dying
on
or
after
July
1,
2021,
but
before
July
1,
2022,
there
18
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
rate
19
in
subsections
1
through
4,
reduced
by
thirty
percent,
and
20
rounded
to
the
nearest
one-hundredth
of
one
percent.
21
d.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
22
through
4,
for
property
passing
from
the
estate
of
a
decedent
23
dying
on
or
after
July
1,
2022,
but
before
July
1,
2023,
there
24
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
25
rate
in
subsections
1
through
4,
reduced
by
forty
percent,
and
26
rounded
to
the
nearest
one-hundredth
of
one
percent.
27
e.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
28
through
4,
for
property
passing
from
the
estate
of
a
decedent
29
dying
on
or
after
July
1,
2023,
but
before
July
1,
2024,
there
30
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
31
rate
in
subsections
1
through
4,
reduced
by
fifty
percent,
and
32
rounded
to
the
nearest
one-hundredth
of
one
percent.
33
f.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
34
through
4,
for
property
passing
from
the
estate
of
a
decedent
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dying
on
or
after
July
1,
2024,
but
before
July
1,
2025,
there
1
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
2
rate
in
subsections
1
through
4,
reduced
by
sixty
percent,
and
3
rounded
to
the
nearest
one-hundredth
of
one
percent.
4
g.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
5
through
4,
for
property
passing
from
the
estate
of
a
decedent
6
dying
on
or
after
July
1,
2025,
but
before
July
1,
2026,
there
7
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
rate
8
in
subsections
1
through
4,
reduced
by
seventy
percent,
and
9
rounded
to
the
nearest
one-hundredth
of
one
percent.
10
h.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
11
through
4,
for
property
passing
from
the
estate
of
a
decedent
12
dying
on
or
after
July
1,
2026,
but
before
July
1,
2027,
there
13
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
rate
14
in
subsections
1
through
4,
reduced
by
eighty
percent,
and
15
rounded
to
the
nearest
one-hundredth
of
one
percent.
16
i.
In
lieu
of
each
rate
of
tax
imposed
in
subsections
1
17
through
4,
for
property
passing
from
the
estate
of
a
decedent
18
dying
on
or
after
July
1,
2027,
but
before
July
1,
2028,
there
19
shall
be
imposed
a
rate
of
tax
equal
to
the
applicable
tax
rate
20
in
subsections
1
through
4,
reduced
by
ninety
percent,
and
21
rounded
to
the
nearest
one-hundredth
of
one
percent.
22
Sec.
2.
NEW
SECTION
.
450.98
Tax
repealed.
23
Effective
July
1,
2028,
this
chapter
shall
not
apply
to
24
property
of
estates
of
decedents
dying
on
or
after
July
1,
25
2028.
The
inheritance
tax
shall
not
be
imposed
under
this
26
chapter
in
the
event
the
decedent
dies
on
or
after
July
1,
27
2028,
and,
to
this
extent,
this
chapter
is
repealed.
28
Sec.
3.
NEW
SECTION
.
450B.8
Tax
repealed.
29
Effective
July
1,
2028,
this
chapter
shall
not
apply
to
30
property
of
estates
of
decedents
dying
on
or
after
July
1,
31
2028.
The
qualified
use
inheritance
tax
shall
not
be
imposed
32
under
this
chapter
in
the
event
the
decedent
dies
on
or
after
33
July
1,
2028,
and,
to
this
extent,
this
chapter
is
repealed.
34
Sec.
4.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
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to
remove
chapters
450
and
450B
from
the
Code
and
correct
1
appropriate
references
to
chapters
450
and
450B
and
appropriate
2
references
to
the
inheritance
tax
and
qualified
use
inheritance
3
tax
effective
July
1,
2038.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
proportionally
reduces
over
a
nine-year
fiscal
8
period
the
rates
of
tax
applicable
to
the
state
inheritance
9
tax,
beginning
for
estates
of
decedents
dying
on
or
after
July
10
1,
2019.
The
bill
then
repeals
the
state
inheritance
tax
and
11
the
state
qualified
use
inheritance
tax
effective
July
1,
2028,
12
for
property
of
estates
of
decedents
dying
on
or
after
July
1,
13
2028.
Inheritance
tax
will
not
be
imposed
on
any
property
in
14
the
event
of
the
death
of
an
individual
on
or
after
July
1,
15
2028.
The
bill
directs
the
Code
editor
to
remove
Code
chapters
16
450
(inheritance
tax)
and
450B
(qualified
use
inheritance
tax)
17
from
the
Code
effective
July
1,
2038.
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