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If Senate Majority Leader Bill Frist has his way, a vote is imminent on whether to repeal or reduce the estate tax.

Frist, R-Tenn., said earlier this year that he plans to schedule a Senate vote on the issue in May – exactly a year after the House voted 272 to 162 to repeal the estate tax, also known as the death tax. The Senate had been prepared to vote on the death tax after it returned from summer break last year, but the measure was put on hold so lawmakers could deal with the aftermath of Hurricane Katrina.

In his fiscal year 2007 budget, President Bush called for a permanent death tax repeal, saying it was "essential for promoting growth and higher levels of income in the future." Death taxes sometimes destroy family-owned businesses because surviving family members are forced to sell land, buildings or equipment to generate enough money to pay the tax.

The Economic Growth and Tax Relief Reconciliation Act of 2001 phases out the death tax until a temporary repeal in 2010. But due to a "sunset clause" in the legislation, death taxes will resume in 2011 unless Congress makes the repeal permanent.

Currently, there is a $1.5 million exemption from the death tax and maximum tax rate of 47 percent. Heirs of an estate valued at $5 million would pay $1,635,000 in taxes in 2005, according to a report by the National Cattlemen's Beef Association. If death taxes were reinstated in 2011, the exemption level would fall to $1 million while the maximum tax rate would jump to 55 percent.

Adam Sharp, OFBF's director of national affairs, said it is not known yet what type of bill will make it to the Senate floor. The options are a full repeal of the tax or a $10 million exemption.

"Farm Bureau is in support of a full repeal of the death tax but has new policy this year that accepts a $10 million exemption," Sharp said.

He noted that Ohio Sen. Mike DeWine has been very supportive of a permanent repeal while Sen. George Voinovich supports increasing the exemption amount for agriculture.

"This has been a long time coming," Sharp said. "For more than 10 years, Farm Bureau has been calling for death tax reform. Hopefully in May we will have permanent action."