|
“And that doesn't include the value of any of your equipment,
your trucks, the value of any livestock you may have harvested,
corn or soy, doesn't include barns, doesn't include your house,”
Raney told The Center Square.
Raney said the Family Farm Preservation Act changes the $4
million threshold and would be huge for agriculture in Illinois.
“We want that number to be $6 million, however, the first 6
million is tax-free. So if your estate is $6.5 million, you are
taxed on $500,000 and then we tie that $6 million to inflation,”
Raney said.
Raney said the bill would alleviate the discrepancy between high
land values and income.
State Rep. Sharon Chung, D-Bloomington, filed House Bill 4736
last March, after her previous version of the Family Farm
Preservation Act failed to advance in 2025.
Gov. J.B. Pritzker addressed the issue when he spoke at the
Illinois Agricultural Legislative Roundtable in August.
“We ought to change the estate tax in the state of Illinois and
I am going to support in this session and have been supporting
the Family Farm Preservation Act,” Pritzker said.
The Illinois Freedom Caucus urged support for the legislation,
calling it a rare opportunity to come together “on a common
sense, pro-taxpayer reform.”
The Center Square asked Freedom Caucus member and state Rep.
Adam Niemerg, R-Dieterich, if he thought the bill might pass
during fall veto session.
“I really, really hope that it can. Unfortunately, the
Democrats, they keep talking about this issue and promising
movement on it, but when the rubber meets the road, it never
seems to happen,” Niemerg said.
Raney said there is broad support from both parties, but the
state has budget pressures.
“Because this at the end of the day will decrease revenue by a
little bit to the state, because it is a tax reform,” Raney
said.
The estate tax generated $68 million last month from all
Illinoisans, not just farmers.
Niemerg said the estate tax also affects small businesses.
“We have some of the highest taxes in the country, and it’s
about time we started helping some folks out,” Niemerg said.
Last year, the federal government raised its estate and gift tax
exclusion amount to $15 million for calendar year 2026.
Raney said Illinois has not changed its estate tax in almost 15
years.
|
|
