House opts to repeal estate tax on a 93-7 vote

By Michael Sluss
Roanoke Times

Legislation that would repeal Virginia's inheritance tax on large estates passed the House of Delegates overwhelmingly on Thursday, and appears likely to become law.

By a 93-7 vote, the House passed House Bill 40, which would end the tax on estates valued at $1 million or more next year. Senate leaders and Gov. Tim Kaine have expressed support.

Supporters have insisted the tax places an unfair burden on family farms and small businesses and forces some heirs to sell off assets to cover their tax liability. They also have said the legislation would allow Virginia to conform its repeal with the 2010 expiration of the federal estate tax.

The tax cut would cost an estimated $144 million in its first full year of implementation and $120 million in each of the following four years.