Currently, Iowa’s inheritance tax may be driving the final nail into the heart of the family farm or small business.
SF 307, a bill that would completely eliminate the inheritance tax has cleared two hurdles in the Iowa Senate and is now eligible to be voted on by the full Senate. A similar bill, HF 438, has been introduced in the House.
Iowa is punishing people who, for whatever reason, do not have children of their own or choose to leave their assets to a non-lineal relation or business partner. This could result in the closing of a small business or the sale of a family farm due to insufficient liquid assets to pay the inheritance tax. This isn’t the outcome tax policy should strive to achieve.
This bill becomes eligible for debate on Monday.