SB1735 would phase out Illinois’s estate tax and generation-skipping transfer tax over a five-year period. For estates of persons dying on or after January 1, 2026, and for generation-skipping transfers occurring on or after that date, the tax liability would be reduced to 80% of the current amount, then to 60% in 2027, 40% in 2028, and 20% in 2029. Beginning January 1, 2030, no tax would be imposed under either tax provision.
The bill also adds a repeal provision that would fully repeal the Illinois Estate and Generation-Skipping Transfer Tax Act on January 1, 2031. It takes effect immediately and would amend the existing estate tax and generation-skipping transfer tax sections to reflect the scheduled reductions and eventual elimination. In practical terms, the bill would reduce or eliminate state tax obligations for certain large estates and wealth transfers tied to Illinois-situs property.
Impact
The bill would significantly alter the Illinois Estate and Generation-Skipping Transfer Tax Act by creating a statutory phase-out schedule for both the estate tax and the generation-skipping transfer tax. It would reduce revenues collected under those taxes each year beginning in 2026, eliminate the taxes for deaths and transfers occurring on or after January 1, 2030, and repeal the Act entirely in 2031. The affected parties would primarily be estates, beneficiaries, and trustees involved in taxable transfers of property with an Illinois tax situs, as well as the state government, which would lose this revenue source over time.
Sentiment
Based on the bill text and the available context, the measure appears to be a tax-cut proposal with a clear policy direction toward eliminating estate-related taxation in Illinois. The caption, “ESTATE TAX-PHASE OUT,” reinforces that the bill is intended to reduce tax burdens rather than adjust administration or enforcement. No committee transcripts or recorded votes were provided, so there is no documented legislative debate or formal vote history to indicate broader support or opposition.
Contention
The main point of contention would likely be the policy tradeoff between reducing taxes on estates and preserving state revenue. Supporters would likely favor the bill as a tax relief and estate-planning measure, while opponents would likely argue that phasing out the tax would reduce state revenues and benefit larger estates disproportionately. Because no hearing transcripts or votes are available, specific objections or sponsors’ arguments cannot be identified from the provided record.
Modifies collective Statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.
Modifies collective statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.