STATEHOUSE — State Representative Timothy Wesco (R-Osceola) introduced legislation that would immediately eliminate state inheritance tax. Last year, legislation was passed that would gradually phase out the inheritance tax over 10 years, eliminating it completely by 2023.
Rep. Wesco supported the 10 year phase out to responsibly reduce the immediate impact on strained state budgets. However, due to higher than anticipated state revenue, Rep. Wesco now feels that his authored legislation, House Bill (HB) 1230, is warranted.
“We can and should now responsibly eliminate this onerous tax to preserve and protect our locally-owned family businesses and farms,” says Rep. Wesco. “Many Hoosiers find themselves having to sell their family farms and businesses because of hefty inheritance taxes imposed on them by the passing of a loved one, and we need to change that.”
If passed into law, HB 1230 would provide that inheritance tax does not apply to property interests transferred by decedents whose deaths occur after Dec. 31, 2012.
“Indiana is in a strong fiscal position with nearly $2 billion in our state reserves,” said Rep. Wesco.
“The inheritance tax is detrimental to our state economy and welfare, encouraging our wealthier citizens to move their official residency to states like Florida that do not have a state inheritance tax. These individuals are often philanthropic pillars of our communities, contributing to every area from the arts to education. We want them to stay in Indiana.”
HB 1230 has been referred to the House Committee on Ways and Means. To track the bill’s progress, visit www.in.gov/legislative, and refer to the bill number.