Republicans who now control the entire Ohio legislature hope to move quickly on a bill to wipe out the estate tax.
Any amounts ABOVE 338-thousand dollars are taxed at a rate of 6 to 7 per cent.
Pro-business activists and farmers are applauding the move….but officials of Ohio cities are worried because they would lose out on REVENUE from the estate tax.You can listen to the details in the radio report by Statehouse correspondent Bill Cohen here.
You can also read an article about it in the Newark Advocate and watch video of the Ohio representatives who are sponsoring the bill here.
This past Sunday, the Plain Dealer published Tom Suddes' column, "GOP's first target is Ohio's estate taxes," which argues the pure political nature of a move which Suddes seems to feel will reap little benefit for most Ohioans and great pain for many cities.
Our state representative is now Marlene Anielski and our state senator is still Tom Patton. If you've got something to say to them about this bill, those links will take you to their statehouse websites and emails and phone numbers.
You can read the text and provisions of the bill after the jump or at the legislature's website, here.
From what I can tell, it looks as though it would in fact go into affect starting with the estates of Ohioans otherwise subject to the estate tax whose deaths occur on or after January 1, 2011. As in, this year.
|
|
Representatives Grossman, Hottinger
Cosponsors: Representatives Adams, J., Martin, McClain, Boose, Huffman, Maag, Brenner, Thompson, Hayes, Okey, Slaby, Newbold, Ruhl, Hite, Sears, Derickson, Dovilla, Gonzales, Blair, Kozlowski, Uecker, Henne, Stautberg, Combs, Roegner, Peterson
To amend sections 5731.02, 5731.19, and 5731.21 of the Revised Code to repeal the estate tax for the estates of individuals dying on or after January 1, 2011.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5731.02, 5731.19, and 5731.21 of the Revised Code be amended to read as follows:
Sec. 5731.02. (A) A tax is hereby levied on the transfer of the taxable estate, determined as provided in section 5731.14 of the Revised Code, of every person dying on or after July 1, 1968, and before January 1, 2011, who at the time of death was a resident of this state, as follows:
| If the taxable estate is: | The tax shall be: |
| Not over $40,000 | 2% of the taxable estate |
| Over $40,000 but not over $100,000 | $800 plus 3% of the excess over $40,000 |
| Over $100,000 but not over $200,000 | $2,600 plus 4% of the excess over $100,000 |
| Over $200,000 but not over $300,000 | $6,600 plus 5% of the excess over $200,000 |
| Over $300,000 but not over $500,000 | $11,600 plus 6% of the excess over $300,000 |
| Over $500,000 | $23,600 plus 7% of the excess over $500,000. |
(B) A credit shall be allowed against the tax imposed by division (A) of this section equal to the lesser of five hundred dollars or the amount of the tax for persons dying on or after July 1, 1968, but before January 1, 2001; the lesser of six thousand six hundred dollars or the amount of the tax for persons dying on or after January 1, 2001, but before January 1, 2002; or the lesser of thirteen thousand nine hundred dollars or the amount of the tax for persons dying on or after January 1, 2002.
Sec. 5731.19. (A) A tax is hereby levied upon the transfer of so much of the taxable estate of every person dying on or after July 1, 1968, and before January 1, 2011, who, at the time ofhisdeath, was not a resident of this state, as consists of real property situated in this state, tangible personal property having an actual situs in this state, and intangible personal property employed in carrying on a business within this state unless exempted from tax under the provisions of section 5731.34 of the Revised Code.
(B) The amount of the tax on such real and tangible personal property shall be determined as follows:
(1) Determine the amount of tax which would be payable under Chapter 5731. of the Revised Code if the decedent had died a resident of this state with allhisthe decedent's property situated or located within this state;
(2) Multiply the tax so determined by a fraction, the denominator of which shall be the value of the gross estate wherever situated and the numerator of which shall be the said gross estate value of the real property situated and the tangible personal property having an actual situs in this state and intangible personal property employed in carrying on a business within this state and not exempted from tax under section 5731.34 of the Revised Code. The product shall be the amount of tax payable to this state.
(C) In addition to the tax levied by division (A) of this section, an additional tax is hereby levied on such real and tangible personal property determined as follows:
(1) Determine the amount of tax which would be payable under division (A) of section 5731.18 of the Revised Code, if the decedent had died a resident of this state with allhisthe decedent's property situated or located within this state;
(2) Multiply the tax so determined by a fraction, the denominator of which shall be the value of the gross estate wherever situated and the numerator of which shall be the said gross estate value of the real property situated and the tangible property having an actual situs in this state and intangible personal property employed in carrying on a business within this state and not exempted from tax under section 5731.34 of the Revised Code. The product so derived shall be credited with the amount of the tax determined under division (B) of this section.
Sec. 5731.21. (A)(1)(a) Except as provided under division (A)(3) of this section, the executor or administrator, or, if no executor or administrator has been appointed, another person in possession of property the transfer of which is subject to estate taxes under section 5731.02 or division (A) of section 5731.19 of the Revised Code, shall file an estate tax return, within nine months of the date of the decedent's death, in the form prescribed by the tax commissioner, in duplicate, with the probate court of the county. The return shall include all property the transfer of which is subject to estate taxes, whether that property is transferred under the last will and testament of the decedent or otherwise. The time for filing the return may be extended by the tax commissioner.
(b) The estate tax return described in division (A)(1)(a) of this section shall be accompanied by a certificate, in the form prescribed by the tax commissioner, that is signed by the executor, administrator, or other person required to file the return, and that states all of the following:
(i) The fact that the return was filed;
(ii) The date of the filing of the return;
(iii) The fact that the estate taxes under section 5731.02 or division (A) of section 5731.19 of the Revised Code, that are shown to be due in the return, have been paid in full;
(iv) If applicable, the fact that real property listed in the inventory for the decedent's estate is included in the return;
(v) If applicable, the fact that real property not listed in the inventory for the decedent's estate, including, but not limited to, survivorship tenancy property as described in section 5302.17 of the Revised Code or transfer on death property as described in sections 5302.22 and 5302.23 of the Revised Code, also is included in the return. In this regard, the certificate additionally shall describe that real property by the same description used in the return.
(2) The probate court shall forward one copy of the estate tax return described in division (A)(1)(a) of this section to the tax commissioner.
(3) A person shall not be required to file a return under division (A) of this section if the decedent was a resident of this state and the value of the decedent's gross estate is twenty-five thousand dollars or less in the case of a decedent dying on or after July 1, 1968, but before January 1, 2001; two hundred thousand dollars or less in the case of a decedent dying on or after January 1, 2001, but before January 1, 2002; or three hundred thirty-eight thousand three hundred thirty-three dollars or less in the case of a decedent dying on or after January 1, 2002. No return shall be filed for estates of decedents dying on or after January 1, 2011.
(4)(a) Upon receipt of the estate tax return described in division (A)(1)(a) of this section and the accompanying certificate described in division (A)(1)(b) of this section, the probate court promptly shall give notice of the return, by a form prescribed by the tax commissioner, to the county auditor. The auditor then shall make a charge based upon the notice and shall certify a duplicate of the charge to the county treasurer. The treasurer then shall collect, subject to division (A) of section 5731.25 of the Revised Code or any other statute extending the time for payment of an estate tax, the tax so charged.
(b) Upon receipt of the return and the accompanying certificate, the probate court also shall forward the certificate to the auditor. When satisfied that the estate taxes under section 5731.02 or division (A) of section 5731.19 of the Revised Code, that are shown to be due in the return, have been paid in full, the auditor shall stamp the certificate so forwarded to verify that payment. The auditor then shall return the stamped certificate to the probate court.
(5)(a) The certificate described in division (A)(1)(b) of this section is a public record subject to inspection and copying in accordance with section 149.43 of the Revised Code. It shall be kept in the records of the probate court pertaining to the decedent's estate and is not subject to the confidentiality provisions of section 5731.90 of the Revised Code.
(b) All persons are entitled to rely on the statements contained in a certificate as described in division (A)(1)(b) of this section if it has been filed in accordance with that division, forwarded to a county auditor and stamped in accordance with division (A)(4) of this section, and placed in the records of the probate court pertaining to the decedent's estate in accordance with division (A)(5)(a) of this section. The real property referred to in the certificate shall be free of, and may be regarded by all persons as being free of, any lien for estate taxes under section 5731.02 and division (A) of section 5731.19 of the Revised Code.
(B) An estate tax return filed under this section, in the form prescribed by the tax commissioner, and showing that no estate tax is due shall result in a determination that no estate tax is due, if the tax commissioner within three months after the receipt of the return by the department of taxation, fails to file exceptions to the return in the probate court of the county in which the return was filed. A copy of exceptions to a return of that nature, when the tax commissioner files them within that period, shall be sent by ordinary mail to the person who filed the return. The tax commissioner is not bound under this division by a determination that no estate tax is due, with respect to property not disclosed in the return.
(C) If the executor, administrator, or other person required to file an estate tax return fails to file it within nine months of the date of the decedent's death, the tax commissioner may determine the estate tax in that estate and issue a certificate of determination in the same manner as is provided in division (B) of section 5731.27 of the Revised Code. A certificate of determination of that nature has the same force and effect as though a return had been filed and a certificate of determination issued with respect to the return.
Section 2. That existing sections 5731.02, 5731.19, and 5731.21 of the Revised Code are hereby repealed.
No comments:
Post a Comment