STATEHOUSE- Rep. Tim Neese (R-Elkhart) supported legislation that dissolves the Inheritance Tax, Senate Bill 293, which passed out of the House on Tuesday. The bill allows small business owners, farmers and individuals who have acquired savings and assets to pass these to their children or others without tax. “This legislation provides Hoosier families reassurance that their family property can be passed on to children or grandchildren without extra tax on the savings or assets,” said Rep. Neese. “Indiana is behind the times when it comes to this legislation. The time is now to start the process of protecting Hoosier families’ property.” Indiana is the only state that does not exempt direct descendants’ children and grandchildren from paying the inheritance tax. Indiana’s inheritance tax rate can range from one percent to as high as 20 percent of a person’s inheritance; 20 percent is the highest possible inheritance tax rate of any state. The bill would raise the exemption for Class A beneficiaries’ children and grandchildren to $250,000 and phase out the Indiana Inheritance Tax over a 10 year period from 2013-2023. Every year, incremental reductions of approximately nine percent would be removed from the state’s inheritance tax. If signed into law by the Governor, SB 293 would be effective starting July 1, 2012. -30- Rep. Tim Neese represents District 48 which includes parts of Elkhart County and parts of St. Joseph County. Rep. Neese is the Chairman of the Local Government Committee, and a member of the Utilities and Energy Committee, Statutory Committee on Interstate and International Cooperation.
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