Family farms need to be protected at all costs and I’m calling for the Illinois Estate Tax to be abolished. Since 2013, the threshold amount of estate tax has been $4 million. Unlike most taxes, this tax is administered by the Attorney General not Illinois Department of Revenue (IDOR). Most of the distribution of these taxes is to the General Revenue Fund (GRF).
How the Estate Tax Effects Illinois Farms
The “Death Tax” many refer to, is levied on property that is physically located in Illinois when its owner dies. Tax planners and advisors often help families move property from place to place if it can be electronically picked up and moved. This strategy is applicable to securities and financial investments, and is less applicable to assets that cannot be moved across state lines. The Illinois tax on estates falls more heavily upon Illinois farmland than upon almost any class of taxable property.
By tradition, Illinois farmland is owned by families, including working farmers. The estate tax seriously threatens this ownership pattern, and the way of life that it underpins. Tax realities sometimes force family farms to sell out to distant owners, including private equity corporations. Much Illinois land is still owned by the men and women who live on it and farm it, but unless tax policies are changed this will no longer be the case.
Estate Tax In Other States
Most U.S. states do not charge an estate tax or an inheritance tax, or have already repealed their taxes on estates and inheritances. Under current law, only 12 states charge an estate/inheritance tax. Midwestern states of Indiana, Michigan, Missouri, Ohio, and Wisconsin, which do not charge an estate tax or an inheritance tax. Large states that do not charge an estate/inheritance tax include California, Florida, and Texas.
Iowa is in the process of phasing out its inheritance tax, with Hawkeye State inheritances scheduled to become fully tax-free in 2025.
I’m asking you to please Sign the Petition to abolish the Estate Tax and Protect Family Farms!