It was back in 2003 that the State of Illinois decoupled from the federal level of how “Estate Tax” is handled. Commonly known as the “Death Tax,” it applies to family businesses as well as farms. But it’s on the farm where most conversation about this has occurred. While families of the owner of farmland owned by a deceased party are not subject to the Estate Tax, according to the federal level, until the property’s appraised value reaches the $13 million mark; in Illinois the tax kicks in at the $4 million mark, causing many families to have to sell portions of their farms or sell the farms entirely.
The proposed Illinois House Bill 4600 would bump Illinois’ Estate Tax exemption from $4 million back up to $6 million. Recently, State Rep Jason Bunting of Emington sent out this reflective comment; saying his family could be one of many more to lose their farm unless this bill is passed.
Audio PlayerAUDIO: We need this bi-partisan legislation to pass. I have seen firsthand my granddad, my dad, and my uncles fight hard for the ground that we have acquired. We are a multi-generational farm. Help Tasha and I pass it on to the next generation.
The Illinois Farm Bureau is fighting hard for this bill, also known as the Family Farms Preservation Act. Tom Fricke of the Vermilion County Farm Bureau says you would think that the time to finally change this is now. But one major problem is that the State of Illinois has become very dependent on that extra Estate Tax money that’s been coming in since 2003.
Audio PlayerAUDIO: If they’d have just left it alone to begin with, they wouldn’t have had that income source to be lost. So, they wouldn’t be used to getting it. But now that they are used to getting it, it’s getting them to agree to do what’s best. As Illinois has become cash strapped in some areas, and continues to do so, there are some legislators that don’t like to give up that cash that’s coming in.
State legislators return to Springfield Tuesday, February 6th, to resume the Spring Session.
