Candidates for governor call for end to estate tax

By CHRISTINA NUCKOLS
The Virginian-Pilot

RICHMOND - All three candidates for governor promised a group of Virginia farmers Friday that they would eliminate the state tax on estates if elected.

Speaking at the Virginia Agriculture and Forestry Initiative, Democrat Timothy M. Kaine said he would support an effort to phase out the tax. He said the action is necessary because the federal government and a majority of states are ending their taxes, causing some people in Virginia to change their domiciles to avoid paying.

Republican Jerry W. Kilgore said he would end the estate tax during his first year in office and called Kaine s proposal a watered-down effort.

Independent H. Russell Potts sided with Kaine on the matter, saying it would be too expensive to end the tax in one big gulp.
The General Assembly approved a measure in 2003 to end the tax. Gov. Mark R. Warner vetoed the bill because it would have eliminated $211 million in state revenues over two years at a time when the governor and lawmakers were cutting state agencies and funding for colleges.

The 16 percent state estate tax affects individual millionaires as well as small-business owners and farmers, who must declare their assets as personal wealth.

Reach Christina Nuckols at (804) 697-1562 or christina.nuckols@pilot online.com.