ARC 9072C

REVENUE DEPARTMENT[701]

Notice of Intended Action

The Revenue Department hereby proposes to rescind Chapter 900, “Inheritance Tax”; to adopt a new Chapter 900 with the same title; and to rescind Chapter 901, “Iowa Estate Tax,” and Chapter 902, “Generation Skipping Transfer Tax,” Iowa Administrative Code.

Legal Authority for Rulemaking

This rulemaking is proposed under the authority provided in Iowa Code sections 450.3, 450A.12 (repealed by 2014 Iowa Acts, chapter 1076), 450B.7 and 451.12 (repealed by 2014 Iowa Acts, chapter 1076).

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code sections 450.98 and 450B.8 as enacted by 2021 Acts, Senate File 619, sections 12 and 13, respectively; and 2014 Iowa Acts, House File 2435, section 25.

Purpose and Summary

The purpose of the proposed rulemaking is to rescind and readopt Chapter 900 and rescind and reserve Chapters 901 and 902. These chapters focused on the administration and application of the State’s inheritance tax, estate tax, and generation-skipping transfer tax, respectively. The Department proposes to rescind Chapters 901 and 902 because the underlying statutes regarding the State’s estate and generation-skipping transfer taxes have been repealed. Further, the State’s inheritance tax no longer applies to deaths occurring on or after January 1, 2025 (2021 Iowa Acts, Senate File 619, sections 12 and 13), so keeping Chapter 900 in its entirety could lead to confusion. Therefore, the Department proposes to readopt Chapter 900 with a reduction of the number of rules to one, which will provide guidance and direction to the public on the application of these taxes.

Regulatory Analysis

Fiscal Impact

This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).

Public Comment

Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on April 22, 2025. Comments should be directed to:

Public Hearing

Public hearings at which persons may present their views orally or in writing will be held as follows:

Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rulemaking action is proposed:

INHERITANCE TAX