From the Indianapolis Star:
"The Indiana House voted 80-17 Tuesday to phase out Indiana's inheritance tax.
The bill earlier passed the Senate 50-0.
Sen. Jim Smith, the Charlestown Republican who authored the measure, said he'll decide today whether to go along with the changes the House made to the measure -- clearing the way for it to go to the governor to be signed into law -- or take it to a House-Senate committee to negotiate a final version.
Rep. Eric Turner, R-Cicero, told the House that Indiana is one of only seven states with an inheritance tax. The first $100,000 left to children and grandchildren is exempt. Under the bill, that would jump to the first $250,000 beginning in 2014, with the tax rate gradually being reduced until the tax is eliminated in 2025.
It would cost the state $51.3 million and counties $5.3 million in 2014, with the lost revenue growing in 2025 to $165 million for the state and $14.2 million for counties.
Rep. Matt Pierce, D-Bloomington, argued against the bill, saying the state has many needs -- including paying for textbooks for students and home health care for seniors and the disabled -- that go unmet because of a lack of funds.
But, Turner said, he believes state revenues will grow to replace the lost funds from the tax and that eliminating it will help families keep businesses and farms."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012202290359
