Representative Avery Bourne (R-Raymond) is sponsoring legislation to help local farm families by repealing the estate and inheritance taxes paid on land transfers upon death. The legislation, House Bill 432, is an effort to stop double taxation of land transfers for agricultural purposes.
Bourne’s HB432 states that if a farmer gifts his land upon death to a descendant, there is no longer a state tax due on the assessed value of the property. Currently, the rate of taxation may be as high as 51% on estate transfers (35% to the Federal Government and between 7.2% and 16% to the State Government).
Representative Bourne explains, “The estate tax in Illinois, especially at a time when small farms are struggling to stay afloat, often means that families must sell the family farm to meet their tax obligations. This adds to the overwhelming tax burden in Illinois.” Bourne states, “This proposal grew out of a suggestion from my Agriculture Advisory Board and I am proud to bring it forward as just one more way we can make Illinois more competitive and compassionate.”
The legislation would be effective immediately upon being signed into law. Currently, 18 states impose an estate tax and 32 states (including neighboring Indiana) do not.