Utah House passes resolution urging repeal of the federal estate tax, citing family farm concerns

The Utah House passed House Joint Resolution 13 on the floor, a nonbinding resolution urging the state’s congressional delegation to support immediate and permanent repeal of the federal estate tax. The House recorded a roll-call of 56 yes votes and 14 no votes before referring the measure to the Senate.

Sponsor Representative Craig Butters framed HJR 13 as relief for family farms, saying the estate tax can make it hard to transfer family property to the next generation. He told colleagues the threshold for federal estate taxation would apply to estates over about $1,000,000, based on the information he had available.

Members who opposed or cautioned about the measure raised several counterpoints. Representative (unnumbered) noted that the phasing out of the estate tax in current federal law is scheduled to proceed through 2010 and that, under some proposals, the so-called step-up in basis for inherited assets would also be phased out — potentially creating capital gains tax consequences on death. Representative Moss noted a historical instance when an estate tax collection contributed to financing construction of the state capitol building, raising the question of lost revenues if the tax were fully repealed.

After short discussion and summations waived, the House voted; the clerk announced HJR 13 received 56 yes votes and 14 no votes and would be referred to the Senate.