Illinois Senate Asst. Majority Leader introduces bill to significantly raise estate tax exemption

August 14, 2023

Peoria Democratic Sen. David Koehler: "You know what I think the number one reason that people leave Illinois is? I think it's the way we structure our estate tax."

Illinois Senate Asst. Majority Leader introduces bill to significantly raise estate tax exemption

In a notable and promising turn, Democratic state Senator David Koehler of Peoria has introduced a bill, SB 2581, that would increase the estate tax exemption from $4 million to $12 million, mirroring the present federal exemption. If the bill is enacted, affected families with estates above $12 million in value would be assessed a rising scale tax percentage that tops out at a 16% marginal tax rate on inheritances. Said Sen. Koehler: “You know what I think the number one reason that people leave Illinois is? I think it’s the way we structure our estate tax. When you look at that and you look at how many family farms you could save; legacy farms that want to be passed on from generation to generation, we have to do something to correct that.” Logan County Republican state Sen. Sally Turner, who supports Sen. Koehler’s effort, noted in her support of the bill, “I don’t know if you have noticed what farm ground goes for now. It’s somewhere up around $20,000 an acre now. Families can’t live like that when their loved ones pass away. They can’t afford to buy it back.” Koehler was elected to the Illinois Senate in 2006 and promoted to Majority Caucus Whip in 2018 and Assistant Majority Leader in 2019, the fourth person in leadership. NFIB has strongly supported efforts to reduce or eliminate the burden of estate taxes on small businesses, both at the state and federal level.

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State:

Illinois

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