Proposal to bar inheritance taxes and require reimbursements for unfunded mandates among constitutional amendments

A legislative report said senators introduced a package of proposed constitutional amendments this week that would bar inheritance taxes and require state reimbursement for new costs imposed on local governments.

The report said senators have introduced a total of 432 bills and 12 proposed constitutional amendments so far this session. The report stated that one amendment would “prohibit counties and the state from collecting inheritance taxes.” According to the report, Governor Pillen “again expressed his intent to eliminate inheritance taxes in order to be competitive with other states.” The report attributed those descriptions to the State of the State address.

Another pair of proposed amendments would target unfunded mandates by requiring the state to reimburse political subdivisions for increased programs or services enacted by the legislature after 2026. The report described reimbursement as to occur either through a specific appropriation or through an increase in state revenue distributions.

If the legislature approves constitutional amendments this session, the report said, they would be placed on the November 26 general election ballot for voter approval.

Why it matters: Banning inheritance taxes would shift revenue responsibilities between counties and the state, and the unfunded-mandates proposals would limit the legislature’s ability to impose new costs on political subdivisions without a funding mechanism. County officials and local governments could face changes to long-term budget planning if either measure is approved.

Next steps: The measures will proceed through committee consideration and floor action; if passed by the legislature they will be decided by voters on the November 26 ballot. The report noted hearings and committee schedules in coming weeks where related bills will be considered.