Prairie State Wire

The Illinois GOP has announced on X that the state's estate tax is one of the most burdensome in the country, asserting it negatively impacts family farms and sometimes necessitates sales to cover tax obligations.

According to the Illinois Soybean Association, Illinois imposes a state estate tax with a current exemption threshold of $4 million, significantly lower than the federal exemption. Unlike federal law, this tax applies to the entire estate once that threshold is exceeded. This structure can result in heirs owing substantial taxes even if the estate falls under federal limits, complicating succession for family farms.

Brownfield Ag News reports that Illinois Farm Bureau leaders are advocating for an increase in the exemption from $4 million to $6 million and a conversion into a true exemption so only amounts above $6 million are taxed. This change is deemed essential as many farms surpass the $4 million mark due to high land values, forcing families to sell acreage to cover the tax.

Statewide news outlet WIFR details the Family Farm Preservation Act (SB 2921/HB 4600), which proposes raising the exemption to $6 million, indexing it to inflation, and exempting only values beyond that amount. Despite gaining bipartisan sponsorship and support from the Illinois Farm Bureau, the bill stalled and did not receive a full House vote.

The Illinois GOP represents conservative policies within the Illinois General Assembly and Republican constituents statewide. They frequently engage in debates on taxes and budgets, communicating party positions through platforms like X and press releases.