U.S. Rep. Jim Gibbons, R-Nev., joined in voting to permanently eliminate the estate tax Monday.
"The death tax is one of the most unfair and onerous taxes in our nation," Gibbons said.
The tax is imposed on the Nevada assets of those who die.
Gibbons said many businessmen in Nevada say they fear the tax could make the difference between allowing their heirs to continue the family business or having to shut it down.
"I have met with small business owners and ranchers in Nevada and they told me that they could not keep their businesses open or ranches operating if they died unless the estate tax was permanently eliminated," he said.
The tax was ordered reduced and eliminated in stages last year but was scheduled to come back in 2011. Monday's vote ensures it will be permanently eliminated.
"Nevadans will never again have to worry that when they lose a family member they may also lose the family business, farm or ranch," Gibbons said.
In Nevada, the estate tax is dedicated completely to education, split 50-50 between the university system and public education with each getting typically $15 million or more. But, in the case of the university system, there is more than $70 million in estate tax revenue in the current two-year budget.
The money the estate tax has traditionally provided will have to be made up by the state's general fund if the bill passed by the House Monday becomes law.