By Andi Anderson
Illinois state representatives and senators have presented bills designed to alleviate financial strain on family farms. Both the House and Senate versions carry identical language, aiming to safeguard the future of family-owned agricultural legacies.
Illinois Farm Bureau President Brian Duncan emphasized the need for change, stating, "The death of a loved one should not force families to give up the farm, and the current Illinois estate tax hits normal everyday family farmers."
The current estate tax structure subjects heirs to taxes on every dollar if the estate exceeds $4 million upon the farm owner's demise. The proposed bill seeks to raise this threshold to $6 million, with amounts beyond this exempt from taxation. Additionally, the threshold would automatically adjust for inflation, providing further protection for family farms.
State Senator Dave Koehler, a bill sponsor, highlighted the financial challenges faced by family farmers. "A farm of just over 300-350 acres may produce $25,000-$30,000 of income, but the estate tax on that could be almost $5 million," he explained, emphasizing the disparity between income and tax liability.
Representative Charlie Meier, himself a farmer, stressed the familial connection farmers have with their land. He emphasized the bill's purpose of ensuring that the land remains within the family for future generations to cultivate.
Lawmakers, including Representative Jason Bunting, underscored the urgency of passing this bipartisan legislation. Without such measures, heirs may be compelled to sell parts of their family farms or incur significant loans to cover the estate tax burden.
Senator Koehler acknowledged uncertainties regarding the potential cost to the state, but the focus remains on securing the future of Illinois family farms through thoughtful changes to estate tax regulations.
Photo Credit: Illinois Farm Bureau
Categories: Illinois, Business, Government & Policy