Bill Lifts Estate Tax in 2006

BY MICHAEL HARDY
TIMES-DISPATCH STAFF WRITER
Tuesday, February 10, 2004


The House today overwhelmingly approved legislation that would eliminate the estate tax for the wealthiest Virginians beginning in 2006.

On a 69-29 vote the House postponed the elimination until the 2006-08 budget to guarantee that the $100 million-a-year price tag for the proposed legislation would not come out of the pending two-year budget, which is short $1 billion.

The House is expected to need all the savings it can find because its proposed budget will be free of general tax increases - for example on retail sales - sought by Gov. Mark R. Warner to help balance the spending package.

The governor's chief spokesman said the House measure, which now goes to the Senate for its consideration, does not meet his preferences.

Repeal of the estate tax, said Ellen Qualls, his press secretary, should be done within the context of comprehensive tax reform and should take effect in the next fiscal year, which begins July 1.

Warner would abolish the tax for estates valued under $10 million and for family owed businesses and farms.

Republicans argued that 30 other states have abolished the tax or are in the process of doing so. It is an assault on the "American dream," said Del. Robert F. McDonnell, R-Virginia Beach, a co-patron of the measure, because some families without liquid assets either have to sell estate property or take out loans to pay the Virginia levy.


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