ARC 9326C - Iowa Administrative Rules

Adopted and Filed

Inheritance tax; Iowa estate tax; generation skipping transfer tax, adopt ch 900; rescind chs 901, 902

Untitled document

ARC 9326C

REVENUE DEPARTMENT[701]

Adopted and Filed

Rulemaking related to Iowa estate tax, generation skipping transfer tax, and inheritance tax

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

Legal Authority for Rulemaking

This rulemaking is adopted under the authority provided in Iowa Code sections 450.3, 450A.12 (repealed by 2014 Iowa Acts, chapter 1076), 450B.7, and 451.12 (repealed by 2014 Iowa Acts, chapter 1076).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 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 is rescinding 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and 902 because the underlying statutes regarding the State’s estate and generation-skipping transfer taxes have been repealed.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 is readopting 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.

Public Comment and Changes to Rulemaking

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on April 2, 2025, as ARC 9072C. Public hearings were held on the following date:

●April 22, 2025

No one attended the public hearings. No timely public comments were received. No changes from the Notice have been made.

Adoption of Rulemaking

This rulemaking was adopted by the Department on May 7, 2025.

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—3.7(99G,123,421,17A).

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).

Effective Date

This rulemaking will become effective on July 2, 2025.

The following rulemaking action is adopted:

ITEM 1.Rescind 701—Chapter 900 and adopt the following new chapter in lieu thereof:

TITLE X

INHERITANCE TAX

CHAPTER 900

INHERITANCE TAX

701—900.1(450,450B) Administration.

900.1(1) State inheritance tax. For deaths occurring on or after January 1, 2025, no state inheritance tax is imposed. For deaths occurring before January 1, 2025, the administrative rules in effect for the year of the death of the decedent contain more information.

900.1(2) Estate tax. For deaths occurring on or after January 1, 2005, no estate tax is imposed. For deaths occurring before January 1, 2005, the administrative rules in effect for the year of the death of the decedent contain more information.

900.1(3) Generation-skipping transfer tax. For deaths occurring on or after January 1, 2005, no generation-skipping transfer tax is imposed. For deaths occurring before January 1, 2005, the administrative rules in effect for the year of the death of the decedent contain more information.

900.1(4) Other applicable federal or state law. Nothing in this chapter shall be construed to affect the provisions of any other federal or state law applicable to a decedent or a decedent’s estate.

This rule is intended to implement Iowa Code sections 450.98 and 450B.8 and 2014 Iowa Acts, House File 2435, section 25.

ITEM 2.Rescind and reserve 701—Chapter 901.

ITEM 3.Rescind and reserve 701—Chapter 902.

[Filed 5/7/25, effective 7/2/25]

[Published 5/28/25]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 5/28/25.