New Bill Keeps Farms Alive in Rhode Island

In Rhode Island, a bill is being sponsoredthat should get rid of the need farmers to sell their land to pay their inheritancetaxes when the owners try to leave their farms to their kids. The new budgethas a measure to have the land evaluated as farmland when it is passing fromone generation to the next. The old practice was to value the land at itshighest value when the farm was being passed on. As a result, most Rhode Islandfarmers had to sell their land to cover the estate tax bills. The change willeliminate estate taxes for most working farms. 

See Kevin O’Connor, Inheritance Tax Rule Would Save Farmers Big Bucks, Herald News Jul. 2, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.