Legislation Fixes Iowa’s Unreasonable Inheritance Tax
NFIB, or the National Federation of Independent Business, Iowa’s leading small business organization, thanks the Senate for passing SF 576 this morning with bipartisan support.
SF 576 makes two significant changes to Iowa’s tax code. It eliminated the inheritance tax over the next few years and eliminates triggers in the tax code legislators passed back in 2018.
This legislation is a very important change for small business owners, who are right now penalized if they are the beneficiary of a business or family farm in the case of a death of the previous owner. In Iowa, if a small business or family farm is left to an aunt/uncle, cousin, sibling, niece/nephew, business partner/friend, step grandchildren or daughter/son-in-law, they are forced to pay a 5-15% tax. Most beneficiaries don’t have the liquid case to pay the outrageous tax bills and either end up selling or closing the business.
“I want to thank Senator Dan Dawson for his leadership in helping pass this important tax legislation,” said Matt Everson, NFIB State Director in Iowa. “The elimination of Iowa’s inheritance tax and the repeal of the 2018 income tax triggers is a huge win for small business and its employees. In a monumental and bipartisan vote, it is evident that both Republican and Democrat Senators believe in the importance of eliminating egregious tax policies like the inheritance tax and lowering Iowa’s income tax rates to help benefit the small business community. We can’t thank the Senate enough for passing SF 527 and look forward to the Iowa House quickly doing the same and sending this bill to the Governor’s desk to sign into law. “
NFIB now urges the House to take up and pass this important small business legislation.
