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Family Farm Preservation Act would protect future generations
Bipartisan legislation introduced in both chambers of the Illinois State Assembly Wednesday would reduce estate tax burdens for family farmers.
During a news conference, House sponsor Sharon Chung says the bill would raise exemptions from $4 to $6 million to be more in line with federal estate tax rules.
“Only the dollars above $6 million will be subject to the tax reform estates,” she explains. “Additionally, the Act will allow any unused exemption amount to be transferred to a surviving spouse.”
Senator sponsor Dave Koehler says the changes would better preserve family farms for future generations.
“A farm of just over 300 to 350 acres may produce $25,000-$30,000 of income, that’s not a lot,” he says. “But the state tax on that is it’s going to be almost $5 million.”
Illinois Farm Bureau President Brian Duncan says the current tax code often forces family farms to sell a portion of their business.
“The death of a loved one should not force families to give up the farm,” he says.
Many co-sponsors during the event spoke about the negative impacts the current estate tax has had on their family farms and the need for its passage to protect Illinois agriculture, the state’s largest industry.
The bill has been referred to the Rules Committee.
I don’t find this article to be very well reported. A family owning 350 acres is not going to pay $5M in tax. Nor are they going to lose the farm if a loved one dies. The tax due is only a 15% tax, and it is only paid on the difference between the cost basis and the current market value. Farmers need to follow the same tax laws that govern other small businesses.