Farm property

From the 2024 DOR Tax Exemption Study

83.100.046 - Farm property Description Estates deduct the value of qualified real and personal property used primarily for farming from their taxable estate. Purpose Ensures surviving family members do not need to sell farm assets to pay estate taxes. However, heirs taking this deduction are not required to continue farming. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $7.200 $7.200 $7.200 $7.200 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $5.400 $7.200 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, which impacts the farm deduction for deaths occurring on or after January 1, 2025. - All payments are made timely at the 9-month due date. - The first payments would be due on October 1, 2025, resulting in nine months of impact in fiscal year 2026. - An average of 24 estates per year take the farm deduction. - The average tax savings per estate is $300,000. Data Sources - Department of Revenue, Estate tax data Additional Additiona