Inheritance tax repeal takes effect with New Year

Associated Press

Siblings and others covered by New Hampshire's death tax no longer will have to pay 18 cents per inherited dollar once the clock chimes in the New Year.

Lawmakers decided last year to repeal the tax, which took 18 percent of any inheritance left to all but children, grandchildren, stepchildren and spouses.

Siblings, other relatives and friends who were not lineal descendants had to count up the glasses in the cupboards and everything else of value so it could be taxed.

The tax will apply to the estates of those who die before midnight Tuesday. In voting out the tax, lawmakers added to a financial hole the new Legislature must address. Combined with the phase-out of the federal death tax, the repeal will cost the state an estimated $70 million in the next two-year budget.