Iowa § 450B.5 Ratio of applicable tax

Iowa Statutes

§ 450B.5 — Ratio of applicable tax

Iowa § 450B.5

Title XFINANCIAL RESOURCES

Ch. 450BQUALIFIED USE INHERITANCE TAX

This text of Iowa § 450B.5 (Ratio of applicable tax) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 450B.5 (2026).

Text

The amount of the additional inheritance tax imposed by section 450B.3 is the excess of
what the tax imposed by chapter 450 would have been had the election to use the qualified
use valuation under section 450B.2 not been made over the tax paid on the real estate based
on qualified use valuation. However, if all of the real estate valued under section 450B.2 is not
disposed of or does not cease to be used for the qualified use, the amount of the additional
inheritancetaxistheamountcomputedbyapplyingtheratiothattherealestatesubjecttothe
qualified use valuation which has been disposed of or which the qualified use ceases bears to
alltherealestatesubjecttothequalifiedusevaluationpassingtothetaxpayertotheexcessof
the tax which would have been imposed by chapter 450 had the election under secti

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The amount of the additional inheritance tax imposed by section 450B.3 is the excess of
what the tax imposed by chapter 450 would have been had the election to use the qualified
use valuation under section 450B.2 not been made over the tax paid on the real estate based
on qualified use valuation. However, if all of the real estate valued under section 450B.2 is not
disposed of or does not cease to be used for the qualified use, the amount of the additional
inheritancetaxistheamountcomputedbyapplyingtheratiothattherealestatesubjecttothe
qualified use valuation which has been disposed of or which the qualified use ceases bears to
alltherealestatesubjecttothequalifiedusevaluationpassingtothetaxpayertotheexcessof
the tax which would have been imposed by chapter 450 had the election under section 450B.2
not been made over the tax paid on the real estate based on qualified use valuation. However,
the additional inheritance tax shall not be computed on a value greater than the fair market
value of the qualified real estate at the time the disposition or cessation of the qualified use
occurs.
[81 Acts, ch 147, §16]