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The Family Farm Preservation Act in House Bill 4600 is designed
to protect farm families and their land by updating the Illinois
Estate Tax code to include protections in regards to inflation.
Proponents say some families were forced to sell off some or all
of the family farm to pay the estate tax, also called the "death
tax."
"Hardworking farmers in our community and all across Illinois
are facing enormous economic challenges right now and it is not
the time to add to that with overbearing taxes," said state Rep.
Sharon Chung, D-Bloomington.
If approved, the legislation would reform the current state tax
for farm estates only, by changing the tax exclusion with only
dollars over $6 million to be taxed under the exemption. The
current threshold is $4 million.
The bill also contains provisions for inflation and tie the
exemption amount to annual changes in the Consumer Price Index.
The changes would only apply to estates eligible for
agricultural special use valuation under federal rules.
Brian Duncan, president of the Illinois Farm Bureau, said the
death of a loved one should not be a death sentence for the
family farm.
“If a family is forced to sell part of that asset, then their
farm is no longer viable and no longer can support the
families,” said Duncan. “Then once it loses its viability, it
will be sold and forced into consolidation.”
Duncan adds that 96% of Illinois farms are owned by families.
“The estate tax has devastated family farms for decades as these
farms are often sold to pay the inheritance tax,” said state
Rep. Charlie Meier, R-Okawville. “Improving estate tax
exemptions for farmers will help save family farms when the farm
is passed down to each generation.
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