Indiana Phases Out Inheritance Tax

Indiana wrapped up their 2012 session on Friday night. Indiana lawmakers submitted to the Governor a measure to phase out the state’s inheritance tax. The measure raises the amount exempt when citizens die from $100,000 to $250,000 and then phases the rest out over the next nine years. Each year, this measure would cost $160 million tax dollars.

The state has a positive financial position, so it is in a position to remove the heavy burden from the state’s entrepreneurs, employers, farmers, retirees, and families.

The smoking ban and state spending on full-day kindergarten bills were both approved. Several other measures under close consideration were:

• Police Home Entry: The Indiana Supreme Court held in May that Indiana citizens do not have the right to resist the entry of police officers into their homes if they believe they are entering unlawfully. Both chambers were set to approve a bill that overturned this decision.
• Superintendent Contracts: This measure would require school boards to post financial details of superintendents’ contracts.
• Public Access: This measure allows judges to levy civil fines against public officials who violate Indiana’s public access laws intentionally.

See Eric Bradner, Legislators Approve Phaseout of Indiana’s Inheritance Tax, Evansville Courier and Press, Mar. 9, 2012.