Kilgore said the state could help farmers by repealing the estate tax

Kilgore backs enterprise zones for agriculture, end to estate tax

The attorney general said the effects of enterprise zones would be "great for farmers."

By McGregor McCance
981-3234
The Roanoke Times

HOT SPRINGS - Virginia Attorney General Jerry Kilgore on Monday said the state could help farmers by creating enterprise zones for agriculture and by repealing the estate tax.

But he acknowledged that each idea would be tough to put into practice. The General Assembly has for years declined to repeal the estate tax, also known as the "death tax," which applies to those receiving inheritance from family members.

The legislature last year also killed a proposal to establish agricultural enterprise zones. Enterprise zones now in place in Virginia help urban areas, including two in Roanoke. The zones spur business growth by providing certain incentives and tax breaks.

At the annual Virginia Farm Bureau Federation convention, Kilgore said establishing similar zones for agriculture "will provide farmers in Virginia with the kind of incentives and exemptions that can make all the difference between a good year or a bad year, and that is great for farmers."

Kilgore, the presumptive Republican gubernatorial candidate, said Virginia's death tax hurts family farming because it can force those inheriting farms to consider selling the land instead of farming it, just to avoid facing a large tax bill.

Lawmakers considered a repeal of the tax last year, but they eventually left it in place because of the state's severe budget problems.

"We shouldn't make farmers worry about passing down the family farm," Kilgore said after his speech.

Kilgore also said Virginia farmers and those operating agribusinesses, such as Christmas tree farms, can focus more on tapping into global markets.

Countries such as China are viewed as growing threats to Virginia agriculture, exporting everything from low-cost Christmas trees to cheap apples used to make juice.

Kilgore said state government can do more to open foreign markets to Virginia products and improve awareness of homegrown products elsewhere. Among other things, he said, the state can focus more on overseas trade offices and better fund the Virginia port authority.

"They're great opportunities," he said of China and other Far East countries.

Kilgore said he would likely make a formal announcement of his political plans early next year. His likely opponent, Democratic Lt. Gov. Tim Kaine, is scheduled to address the Farm Bureau convention Wednesday