Illinois Valley Times

Illinois state Rep. Ryan Spain (R-Peoria) spoke about the state's estate tax in a July 1 update on his website. House Republicans proposed bills in spring 2023 to completely repeal the Illinois tax on estates, as well as bills to change the exclusion amount.

"House Republicans are committed to reforming the estate law in Illinois," Spain said in the update. "Families shouldn't have to choose between ending their family's commitment to their proud heritage and paying an onerous, complicated tax which punishes family farms and small business owners."

The update included an explanation of what the estate tax is.

"An estate tax, or inheritance tax as it is known in other states, is a tax paid by the estate of a deceased person after all debts to the private sector have been paid," the update said. "In the states like Illinois where it is a law, payment of an estate tax is an essential part of the probate process. In estate tax law, the exclusion amount is an amount that is not considered when an estate is being taxed."

The update also noted that the Illinois Estate Tax cannot be applied to an excluded portion of an estate. The excluded amount is $4 million, whereas the federal exclusion amount is $12.92 million.

In Illinois, the estate tax is administered by the state's attorney general, and that is the office the taxes are paid to. The Illinois attorney general has a website where residents can find information, forms and addresses to contact the office. One of the information sections is a link to the administrative code that covers estate taxes, including civil unions. There is also a schedule of assets and a section on prescribed returns.

In February, the Civic Committee of the Commercial Club of Chicago released a report on stabilization of state finances, and it recommended the repeal of the estate tax. In its recommendation, the group noted that Illinois is one of only 13 states with an estate tax and that the state tax is charged on top of the federal estate tax. While the group advocates for full repeal of the estate tax, it suggests that the state could "also consider changing the exemption level to align with federal policy."

The Republicans in Illinois are not the only ones looking at the estate tax. In a June 9 article, the Chicago Sun-Times reported that state Sen. Don Harmon (D-Oak Park) was intrigued by the recommendations from the Civic Committee of the Commercial Club of Chicago.

"I think that the Civic Committee offers a very interesting blueprint," Harmon said of the tax hike proposals from the group. "And if in fact, the Civic Committee can generate broad support from the business community and from Republican lawmakers, it's absolutely worth a longer conversation."

Spain has represented the people of Illinois' 73rd District since 2017, his website biography said. Before he served in the state legislature, Spain had been elected to the Peoria City Council as the youngest at-large member in Peoria history, a seat he held until fall of 2016. He is currently employed at OSF HealthCare as the vice president of economic development.