Cattlemen welcome legislation providing ‘death tax’ relief

The National Cattlemen’s Beef Association is supporting legislation that would provide farmers and ranchers with relief from the so-called death tax.

H.R. 3524 would exempt working farm/ranch land from the estate tax, as long as the land is kept in production agriculture. The bill also provides estate tax relief for land under qualified conservation easements. Should the land be used or sold for other purposes, a recapture tax would be imposed.

“The death tax is one of the leading causes of the breakup of family farms, as producers are forced to sell their land to pay off taxes on their inheritance,” said Gary Voogt, NCBA president. “This legislation is an important step in ensuring hardworking farmers and ranchers can keep their land in their families.”

Currently, estates valued at more than $3.5 million, or $7 million for a couple, are taxed at a 45 percent rate. President Obama has proposed freezing it at this level so it can be dealt with at a later date. But if Congress doesn’t act to freeze or reduce the estate tax in 2011, it will revert to 55 percent tax on estates worth $1 million or more.