Panel hears bill to allow low-income heirs to pay inheritance tax in installments

Delegate John Carden asked the Ways and Means Committee on Jan. 20 to give a favorable report to House Bill 98, a measure that would allow certain heirs of limited means to pay inheritance taxes on a primary residence over time.

The bill, Carden said, "gives people of limited means the option to be able to basically get on a payment plan to pay the the inheritance tax over time." He told the committee the measure was narrowed over several years and that the fiscal note shows no net fiscal impact.

Why it matters: Sponsors and questions focused on preserving homeownership for people who inherit houses from relatives who are not immediate family (not parents, siblings, children or spouses). Carden said the proposal targets primary residences left by others such as uncles or aunts and is intended to prevent forced sales to meet a tax bill.

Committee members probed implementation details. Delia Hartman asked whether the bill applies only to real property; Carden confirmed it is limited to real estate and that recipients would need to certify the house is their primary residence. Elliot Ebersole noted the bill leaves timing and duration largely to the register of wills and asked whether guidelines (for example three to five years) should be specified. "We have no guidelines," Carden said, adding that regulations could be set by the register of wills.

Delegate Long asked how the obligation would be secured. Carden said he expected a lien would be possible: "I would imagine the state or the county ... would probably be able to get a lien against it," but he said he was not certain which office would collect and handle enforcement.

The committee concluded the hearing with the chair saying the bill would be given "strong consideration." No formal vote was recorded during the hearing.

What’s next: HB 98 remains a sponsor-only bill after the hearing; the committee did not take a final vote on the measure during the Jan. 20 session.