As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 108 5
1999-2000 6
SENATORS LATTA-OELSLAGER-WATTS-BLESSING-MUMPER-WHITE- 8
NEIN-WACHTMANN-CUPP-HOTTINGER-CARNES-ARMBRUSTER-SPADA 9
_________________________________________________________________ 11
A B I L L
To amend sections 5731.02, 5731.18, 5731.181, 13
5731.47, and 5731.48 of the Revised Code to 14
reduce the estate tax by thirty-six per cent over
five years and to phase out the share of the 15
estate tax paid to the state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That sections 5731.02, 5731.18, 5731.181, 19
5731.47, and 5731.48 of the Revised Code be amended to read as 20
follows:
Sec. 5731.02. (A) A tax is hereby levied on the transfer 29
of the taxable estate, determined as provided in section 5731.14 30
of the Revised Code, of every person dying on or after July 1, 31
1968, who at the time of his death was a resident of this state, 32
as follows: 33
(1) FOR PERSONS DYING ON OR BEFORE DECEMBER 31, 1999: 36
If the taxable estate is: The tax shall be: 38
Not over $40,000 2% of the taxable estate 39
Over $ 40,000 but not over $800 plus 3% of the excess 40
$100,000 over $40,000 41
Over $100,000 but not over $2,600 plus 4% of the excess 42
$200,000 over $100,000 43
Over $200,000 but not over $6,600 plus 5% of the excess 45
$300,000 over $200,000
Over $300,000 but not over $11,600 plus 6% of the excess 47
$500,000 over $300,000
2
Over $500,000 $23,600 plus 7% of the excess 49
over $500,000.
(2) FOR PERSONS DYING IN CALENDAR YEAR 2000: 51
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 53
NOT OVER $40,000 1.856% OF THE TAXABLE ESTATE 54
OVER $40,000 BUT NOT OVER $742.40 PLUS 2.784% OF THE 56
$100,000 EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $2,412.80 PLUS 3.712% OF THE 58
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $6,124.80 PLUS 4.64% OF THE 60
$300,000 EXCESS OVER $300,000
OVER $300,000 BUT NOT OVER $10,764.80 PLUS 5.568% OF THE 62
$500,000 EXCESS OVER $300,000
OVER $500,000 $21,900.80 PLUS 6.496% OF THE 64
EXCESS OVER $500,000
(3) FOR PERSONS DYING IN CALENDAR YEAR 2001: 67
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 69
NOT OVER $40,000 1.712% OF THE TAXABLE ESTATE 71
OVER $40,000 BUT NOT OVER $684.80 PLUS 2.568% OF THE 73
$100,000 EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $2,225.60 PLUS 3.424% OF THE 75
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $5,649.60 PLUS 4.28% OF THE 77
$300,000 EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $9,929.60 PLUS 5.136% OF THE 79
$500,000 EXCESS OVER $300,000
OVER $500,000 $20,201.60 PLUS 5.992% OF THE 81
EXCESS OVER $500,000
(4) FOR PERSONS DYING IN CALENDAR YEAR 2002: 84
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 87
NOT OVER $40,000 1.568% OF THE TAXABLE ESTATE 89
OVER $40,000 BUT NOT OVER $627.20 PLUS 2.352% OF THE 91
$100,000 EXCESS OVER $40,000
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OVER $100,000 BUT NOT OVER $2,038.40 PLUS 3.136% OF THE 93
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $5,174.40 PLUS 3.92% OF THE 95
$300,000 EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $9,094.40 PLUS 4.704% OF THE 97
$500,000 EXCESS OVER $300,000
OVER $500,000 $18,502.40 PLUS 5.488% OF THE 99
EXCESS OVER $500,000
(5) FOR PERSONS DYING IN CALENDAR YEAR 2003: 102
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 105
NOT OVER $40,000 1.424% OF THE TAXABLE ESTATE 107
OVER $40,000 BUT NOT OVER $569.60 PLUS 2.136% OF THE 109
$100,000 EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $1,851.20 PLUS 2.848% OF THE 111
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $4,699.20 PLUS 3.56% OF THE 113
$300,000 EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $8,259.20 PLUS 4.272% OF THE 115
$500,000 EXCESS OVER $300,000
OVER $500,000 $16,803.20 PLUS 4.984% OF THE 117
EXCESS OVER $500,000
(6) FOR PERSONS DYING ON OR AFTER JANUARY 1, 2004: 120
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 123
NOT OVER $40,000 1.28% OF THE TAXABLE ESTATE 125
OVER $40,000 BUT NOT OVER $512 PLUS 1.92% OF THE EXCESS 127
$100,000 OVER $40,000
OVER $100,000 BUT NOT OVER $1,664 PLUS 2.56% OF THE 129
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $4,224 PLUS 3.2% OF THE EXCESS 131
$300,000 OVER $200,000
OVER $300,000 BUT NOT OVER $7,424 PLUS 3.84% OF THE 133
$500,000 EXCESS OVER $300,000
OVER $500,000 $15,104 PLUS 4.48% OF THE 135
EXCESS OVER $500,000
4
(B) A credit shall be allowed against the tax imposed by 138
division (A) of this section equal to the lesser of five hundred 139
dollars or the amount of the tax. 140
Sec. 5731.18. (A)(1) In addition to the tax levied by 149
section 5731.02 of the Revised Code, AND SUBJECT TO DIVISION 151
(A)(2) OF THIS SECTION, a tax is hereby levied upon the transfer 152
of the estate of every person dying on or after July 1, 1968, 153
who, at the time of his death was a resident of this state, in an 154
amount equal to the maximum credit allowable by subtitle B, 155
chapter CHAPTER 11 of the Internal Revenue Code of 1954, 26 156
U.S.C. 2011, as amended, for any taxes paid to any state. 157
(2) IN ORDER TO REDUCE THE TAX LEVIED BY DIVISION (A)(1) 159
OF THIS SECTION BY THIRTY-SIX PER CENT OVER FIVE YEARS, THE TAX 160
CALCULATED UNDER THAT DIVISION SHALL BE MULITIPLIED BY THE 161
APPLICABLE FACTOR, AS FOLLOWS, TO DETERMINE THE TAX DUE: 162
IF THE PERSON DIED: THE FACTOR SHALL BE: 164
IN CALENDAR YEAR 2000 .928 165
IN CALENDAR YEAR 2001 .856 166
IN CALENDAR YEAR 2002 .784 167
IN CALENDAR YEAR 2003 .712 168
ON OR AFTER JANUARY 1, 2004 .640 169
(B) The tax levied on any estate under this section shall 172
be credited with the amount of the tax levied under section 173
5731.02 of the Revised Code and with the amount of any estate, 174
inheritance, legacy, or succession taxes actually paid to any 175
state or territory of the United States or to the District of 176
Columbia on any property included in the decedent's gross estate 177
for federal estate tax purposes. 178
(C) The additional tax levied under this section shall be 180
administered, collected, and paid as provided in section 5731.24 181
of the Revised Code. 182
Sec. 5731.181. (A) For purposes of this section, 191
"generation-skipping transfer," "taxable distribution," and 192
"taxable termination" have the same meaning as in Chapter 13 of 193
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subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718, 194
26 U.S.C. 2601-2624, as amended. 195
(B)(1)(a) A tax is hereby levied upon every 197
generation-skipping transfer of property having a situs in this 198
state, that occurs at the same time as, and as a result of, the 199
death of an individual, in an amount equal to the credit allowed 200
by Chapter 13 of subtitle B of the Internal Revenue Code of 1986, 201
100 Stat. 2718, 26 U.S.C. 2601-2624, as amended, MULITPLIED BY 202
THE FACTOR SPECIFIED IN DIVISION (B)(1)(b) OF THIS SECTION, for 203
any taxes paid to any state in respect of any property included 205
in the generation-skipping transfer.
(b) IN ORDER TO REDUCE THE TAX LEVIED BY DIVISION 208
(B)(1)(a) OF THIS SECTION BY THRITY-SIX PER CENT OVER FIVE YEARS, 209
THE TAX CALCULATED UNDER THAT DIVISION SHALL BE MULTIPLIED BY THE
APPLICABLE FACTOR, AS FOLLOWS, TO DETERMINE THE TAX DUE: 210
IF THE PERSON DIED: THE FACTOR SHALL BE: 212
IN CALENDAR YEAR 2000 .928 213
IN CALENDAR YEAR 2001 .856 214
IN CALENDAR YEAR 2002 .784 215
IN CALENDAR YEAR 2003 .712 216
ON OR AFTER JANUARY 1, 2004 .640 217
(2) For purposes of this division, "property having a 220
situs in this state" includes all the following: 221
(1)(a) Real property situated in this state; 223
(2)(b) Tangible personal property having an actual situs 225
in this state; 226
(3)(c) Intangible personal property employed in carrying 228
on a business in this state; 229
(4)(d) Intangible personal property owned by a trust, the 231
trustee of which resides in or has its principal place of 232
business in this state, or, if there is more than one trustee of 233
the trust, the principal place of administration of which is in 234
this state. 235
(C) The return with respect to the generation-skipping tax 237
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levied by division (B) of this section shall be filed in the form 238
that the tax commissioner shall prescribe, on or before the day 239
prescribed by law, including extensions, for filing the 240
generation-skipping transfer tax return under Chapter 13 of 241
subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718, 242
26 U.S.C. 2601-2624, as amended, for the same generation-skipping 243
transfer. The return shall be filed by the distributee in the 244
case of a taxable distribution and by the trustee in the case of 245
a taxable termination. 246
(D) The generation-skipping tax levied by division (B) of 248
this section shall be paid, without notice or demand by the tax 249
commissioner, with the return, and shall be charged, collected, 250
and administered in the same manner as estate taxes levied by 251
this chapter. This chapter is generally applicable to, except to 252
the extent it is inconsistent with the nature of, the 253
generation-skipping tax. 254
(E) If another state levies a generation-skipping tax on a 256
transfer described in division (B) of this section, the tax 257
commissioner may enter into a compromise of the 258
generation-skipping tax levied by division (B) of this section in 259
the manner provided in section 5731.35 of the Revised Code, 260
except that no approval of any probate court is required. If 261
such a compromise agreement is made, no interest and penalties 262
shall accrue for the period prior to the execution of the 263
agreement and for sixty days after its execution. 264
Sec. 5731.47. The fees of the sheriff or other officers 273
for services performed under Chapter 5731. of the Revised Code, 275
and the expenses of the county auditor shall be certified by the 276
county auditor by a report filed with the tax commissioner. If 278
the tax commissioner finds that such fees and expenses are
correct and reasonable in amount, he THE COMMISSIONER shall 279
indicate his THE COMMISSIONER'S approval in writing to the county 281
auditor. The auditor shall pay such fees and expenses out of the
state's share of the undivided inheritance taxes in the county 282
7
treasury and draw his warrants payable from such taxes, on the 283
county treasurer in favor of the fee funds or officers personally 284
entitled thereto. IF SUCH FEES AND EXPENSES EXCEED THE STATE'S 285
SHARE OF THE TAXES, THE EXCESS SHALL BE PAID OUT OF THE SHARES OF 286
THE MUNICIPAL CORPORATIONS AND TOWNSHIPS IN WHICH THE TAXES 287
ORIGINATED IN PROPORTION TO SUCH SHARES.
Sec. 5731.48. If a decedent dies on or after July 1, 1989, 296
sixty-four per cent A PERCENTAGE of the gross amount of taxes 297
levied and paid under this chapter shall be for the use of the 299
municipal corporation or township in which the tax originates, 300
and. THE PERCENTAGE SHALL BE DETERMINED AS FOLLOWS: 301
IF THE DATE OF DEATH IS: THE PERCENTAGE SHALL BE: 303
BEFORE JANUARY 1, 2000 64.0 304
DURING CALENDAR YEAR 2000 68.9 305
DURING CALENDAR YEAR 2001 74.8 306
DURING CALENDAR YEAR 2002 81.6 307
DURING CALENDAR YEAR 2003 89.9 308
ON OR AFTER JANUARY 1, 2004 100 309
THE AMOUNT TO BE USED BY THE MUNICIPAL CORPORATION OR TOWNSHIP 313
shall be credited as follows: 314
(A) To the general revenue fund in the case of a city; 316
(B) To the general revenue fund of a village or to the 318
board of education of a village, for school purposes, as the 319
village council by resolution may approve; 320
(C) To the general revenue fund or to the board of 322
education of the school district of which the township is a part, 323
for school purposes, as the board of township trustees by 324
resolution may approve, in the case of a township. 325
Where a municipal corporation is in default with respect to 327
the principal or interest of any outstanding notes or bonds, one 328
half of the taxes distributed under this section shall be 329
credited to the sinking or bond retirement fund of the municipal 330
corporation, and the residue shall be credited to the general 331
revenue fund. 332
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The council, board of trustees, or other legislative 334
authority of a village or township may, by ordinance in the case 335
of a village, or by resolution in the case of a township, provide 336
that whenever there is money in the treasury of the village or 337
township from taxes levied under this chapter, not required for 338
immediate use, that money may be invested in federal, state, 339
county, or municipal bonds, upon which there has been no default 340
of the principal during the preceding five years. 341
The remainder of the taxes levied and paid under this 343
chapter, after deducting the fees and costs charged against the 344
proceeds of the tax under this chapter, shall be for the use of 345
the state, and shall be paid into the state treasury to the 346
credit of the general revenue fund. 347
THE FEES AND COSTS CHARGED AGAINST THE PROCEEDS OF THE 349
TAXES UNDER THIS CHAPTER SHALL BE CHARGED FIRST TO THE STATE'S 350
SHARE OF THE PROCEEDS. IF THE COSTS AND FEES EXCEED THE STATE'S 351
SHARE, THE EXCESS SHALL BE CHARGED TO THE SHARES OF THE MUNICIPAL 352
CORPORATIONS AND TOWNSHIPS IN WHICH THE TAX ORIGINATED IN 353
PROPORTION TO SUCH SHARES.
Section 2. That existing sections 5731.02, 5731.18, 355
5731.181, 5731.47, and 5731.48 of the Revised Code are hereby 356
repealed.