U.S. Rep. Bob Latta (R-OH) recently joined more than 70 of his colleagues in introducing a bipartisan resolution that supports preserving the stepped-up basis tax rule that allows recipients of inherited assets — such as land, equipment or buildings — to adjust the cost basis of the assets to reflect their fair market value.
Rep. Latta said he was proud to lead the effort in the House, “because it puts American farmers, ranchers and small businesses first so that they can ensure their operations can thrive for decades to come.”
House Resolution 1015, sponsored on March 30 by U.S. Rep. Tracey Mann (R-KS) and 73 original cosponsors, including Rep. Latta and U.S. Rep. Jim Costa (D-CA), also would oppose any efforts to impose new taxes on family farms or small businesses and recognizes the importance of generational transfers of farm and family-owned businesses, according to the congressional record bill summary.
“Rural Americans are still reeling from the economic blows of the COVID-19 pandemic, and the last thing they need to be worrying about is the elimination of the estate tax’s stepped-up basis provision,” Rep. Latta said. “The stepped-up basis provision is crucial to small family-owned farms in northwest and west central Ohio as it allows the generational transfer of their operations.”
According to the U.S. Department of Agriculture, 98 percent of farms are family-owned and if the stepped-up basis is eliminated, 66 percent of all mid-sized farms would see an increased tax liability.
“We continue to see damaging policies in the Biden administration’s tax plan, including an effort threatening the stepped-up basis,” said Rep. Mann. “Removing this provision would hurt generational Kansas farmers and ranchers and weaken their ability to keep assets in the family.”
The resolution has garnered support from the National Cattlemen’s Beef Association, the Kansas Farm Bureau, the American Farm Bureau Federation, the Kansas Corn Growers Association, the National Corn Growers Association, the American Soybean Association, USA Rice, and the National Grange.