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Update on IL estate tax reform

The Illinois General Assembly continues to debate the Family Farm Preservation Act.

Senate sponsor Dave Koehler, of Peoria, tells Brownfield the bipartisan effort would ease the burden of estate taxes on Illinois family farms, but faces challenges…

“Everybody is for that because it just makes sense.”  He says, “The difficulty is going to be engaging in the appropriations process because we have less money than we had last year in terms of the budgeting process. We have to figure out what the cost is to the state, and how that stacks up with the rest of our priorities.”

Brian Duncan, president of the Illinois Farm Bureau, says modernization is needed…

“Now you are taxed if you go over the $4,000,000 threshold, the tax goes back and starts at dollar one.”  He says, “This, with the raise to $6,000,000, the tax would only be on the dollars over $6,000,000, so that’s a huge win. And there’s other benefits in there, but it’s modernization. And then tying it to inflation.”

Koehler says a death on the family farm shouldn’t be a tax burden…

“They’re having to sell the farm just to pay the taxes.”  He says, “We don’t want to have that happen.”

Proponents of the measure say it also brings Illinois estate taxes more in line with federal laws. Numerous ag groups have been lobbying for the act this spring. 

The Illinois spring legislative session is schedule to run through the end of May.

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  HECKL, Any one who can make this kind of money in their life should have the same benefit. Their choice is to leave the state now. Farmers can not.

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  We have paid taxes on the income we earned over all the years we have farmed. It’s not realistic to tax on estates on such a low level. Inflation has played a big factor, as well as non-farm investors looking for a place to spend 1031 money. I am so glad Farm Bureau is working so hard to change things. It would be nearly impossible for a young person wanting to farm if there was not help from somewhere…and most of the time it is a generation or two above him. We are losing so many people that work, whether it be plumbers, electricians, mechanics, handy-men/women, carpenters, FARMERS to age and retirement. Send help to benefit those that are interested in the trades as well as future farmers.

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