As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 108 5
1999-2000 6
SENATORS LATTA-OELSLAGER-WATTS-BLESSING-MUMPER-WHITE- 8
NEIN-WACHTMANN-CUPP-HOTTINGER-CARNES-ARMBRUSTER-SPADA- 9
JOHNSON-DRAKE 10
_________________________________________________________________ 12
A B I L L
To amend sections 5731.02, 5731.47, and 5731.48 of 14
the Revised Code and to repeal Section 3 of this 15
act (effective December 31, 2000) to reduce the 16
estate tax by reducing rates and increasing the
credit amount, to reduce the share of the estate 17
tax paid to the state, and to declare an
emergency. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That sections 5731.02, 5731.47, and 5731.48 of 22
the Revised Code be amended to read as follows: 23
Sec. 5731.02. (A) AS USED IN THIS SECTION: 32
(1) "FEDERAL EXEMPTION AMOUNT" FOR A YEAR MEANS THE 34
"APPLICABLE EXCLUSION AMOUNT" FOR THAT YEAR AS PRESCRIBED IN 35
SECTION 2010 OF THE INTERNAL REVENUE CODE, 26 U.S.C.A. 2010. 40
(2) "CUMULATIVE TAX" MEANS FIFTEEN THOUSAND ONE HUNDRED 42
FOUR DOLLARS PLUS FOUR AND FORTY-EIGHT HUNDREDTHS PER CENT OF THE 43
EXCESS OF THE FEDERAL EXEMPTION AMOUNT OVER FIVE HUNDRED THOUSAND 44
DOLLARS.
(B) A tax is hereby levied on the transfer of the taxable 47
estate, determined as provided in section 5731.14 of the Revised 48
Code, of every person dying on or after July 1, 1968, who at the 49
time of his death was a resident of this state, as follows: 50
(1) FOR PERSONS DYING ON OR BEFORE DECEMBER 31, 2000: 53
If the taxable estate is: The tax shall be: 55
2
Not over $40,000 2% of the taxable estate 56
Over $ 40,000 but not over $800 plus 3% of the excess 57
$100,000 over $40,000 58
Over $100,000 but not over $2,600 plus 4% of the excess 59
$200,000 over $100,000 60
Over $200,000 but not over $6,600 plus 5% of the excess 62
$300,000 over $200,000
Over $300,000 but not over $11,600 plus 6% of the excess 64
$500,000 over $300,000
Over $500,000 $23,600 plus 7% of the excess 66
over $500,000.
(2) FOR PERSONS DYING ON OR AFTER JANUARY 1, 2001: 68
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 71
NOT OVER $40,000 1.28% OF THE TAXABLE ESTATE 73
OVER $40,000 BUT NOT OVER $512 PLUS 1.92% OF THE EXCESS 75
$100,000 OVER $40,000
OVER $100,000 BUT NOT OVER $1,664 PLUS 2.56% OF THE 77
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $4,224 PLUS 3.2% OF THE EXCESS 79
$300,000 OVER $200,000
OVER $300,000 BUT NOT OVER $7,424 PLUS 3.84% OF THE 81
$500,000 EXCESS OVER $300,000
OVER $500,000 BUT NOT OVER THE $15,104 PLUS 4.48% OF THE 83
FEDERAL EXEMPTION AMOUNT EXCESS OVER $500,000
OVER THE FEDERAL EXEMPTION THE CUMULATIVE TAX PLUS 7% OF 85
AMOUNT THE EXCESS OVER THE FEDERAL
EXEMPTION AMOUNT 86
(B)(C) A credit shall be allowed against the tax imposed 89
by division (A)(B) of this section equal to the lesser of five 90
hundred ONE THOUSAND dollars or the amount of the tax. 92
Sec. 5731.47. The fees of the sheriff or other officers 101
for services performed under Chapter 5731. of the Revised Code, 103
and the expenses of the county auditor shall be certified by the 104
county auditor by a report filed with the tax commissioner. If 106
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the tax commissioner finds that such fees and expenses are
correct and reasonable in amount, he THE COMMISSIONER shall 107
indicate his approval OF THE FEES AND EXPENSES in writing to the 109
county auditor. The auditor shall pay such fees and expenses out
of the state's share of the undivided inheritance taxes in the 110
county treasury and draw his warrants payable from such taxes, on 112
the county treasurer in favor of the fee funds or officers 114
personally entitled thereto. IF THE FEES AND EXPENSES APPROVED 115
BY THE TAX COMMISSIONER EXCEED THE AMOUNT OF THE STATE'S SHARE OF 116
UNDIVIDED INHERITANCE TAXES IN THE COUNTY TREASURY, THE COUNTY 117
AUDITOR SHALL CERTIFY THE AMOUNT OF THE EXCESS TO THE TAX 118
COMMISSIONER, WHO SHALL CERTIFY THE AMOUNT TO THE DIRECTOR OF 119
BUDGET AND MANAGEMENT. THE DIRECTOR SHALL PROVIDE FOR PAYMENT OF 120
THE EXCESS FROM THE GENERAL REVENUE FUND TO THE COUNTY TREASURY, 121
AND THE COUNTY AUDITOR SHALL DRAW WARRANTS ON THE COUNTY
TREASURER IN FAVOR OF THE APPROPRIATE FEE FUNDS OR OFFICERS. 122
Sec. 5731.48. (A) If a decedent dies on or after July 1, 131
1989, AND BEFORE JANUARY 1, 2001, sixty-four per cent of the 133
gross amount of taxes levied and paid under this chapter shall be 136
for the use of the municipal corporation or township in which the 138
tax originates, and shall be credited as follows PROVIDED IN 139
DIVISION (A)(1), (2), OR (3) OF THIS SECTION: 140
(A)(1) To the general revenue fund in the case of a city; 142
(B)(2) To the general revenue fund of a village or to the 144
board of education of a village, for school purposes, as the 145
village council by resolution may approve; 146
(C)(3) To the general revenue fund or to the board of 148
education of the school district of which the township is a part, 149
for school purposes, as the board of township trustees by 150
resolution may approve, in the case of a township. 151
Where THE REMAINDER OF THE TAXES LEVIED AND PAID SHALL BE 154
FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE GENERAL 155
REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS CHARGED UNDER 156
SECTION 5731.47 OF THE REVISED CODE.
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(B) IF A DECEDENT DIES ON OR AFTER JANUARY 1, 2001, ALL OF 159
THE TAXES LEVIED AND PAID UNDER THIS CHAPTER ON THE PART OF THE 160
TAXABLE ESTATE THAT IS NOT IN EXCESS OF THE APPLICABLE EXCLUSION 161
AMOUNT PRESCRIBED IN SECTION 2010 OF THE INTERNAL REVENUE CODE, 163
26 U.S.C.A. 2010, FOR THE YEAR IN WHICH THE DECEDENT DIES SHALL 164
BE FOR THE USE OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH 165
THE TAX ORIGINATES AND CREDITED AS PROVIDED IN DIVISION (A)(1), 166
(2), OR (3) OF THIS SECTION; OF ANY TAXES LEVIED AND PAID ON THE 167
PART OF THE TAXABLE ESTATE IN EXCESS OF THE APPLICABLE EXCLUSION 169
AMOUNT, SIXTY-FOUR PER CENT SHALL BE FOR THE USE OF THE MUNICIPAL 171
CORPORATION OR TOWNSHIP IN WHICH THE TAX ORIGINATES AND CREDITED 172
AS PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS SECTION, AND 173
THE REMAINDER SHALL BE FOR THE USE OF THE STATE AND SHALL BE 174
CREDITED TO THE GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES 175
AND COSTS CHARGED UNDER SECTION 5731.47 OF THE REVISED CODE.
(C) IF a municipal corporation is in default with respect 178
to the principal or interest of any outstanding notes or bonds, 179
one half of the taxes distributed under this section shall be 180
credited to the sinking or bond retirement fund of the municipal 181
corporation, and the residue shall be credited to the general 182
revenue fund. 183
(D) The council, board of trustees, or other legislative 185
authority of a village or township may, by ordinance in the case 186
of a village, or by resolution in the case of a township, provide 187
that whenever there is money in the treasury of the village or 188
township from taxes levied under this chapter, not required for 189
immediate use, that money may be invested in federal, state, 190
county, or municipal bonds, upon which there has been no default 191
of the principal during the preceding five years. 192
The remainder of the taxes levied and paid under this 194
chapter, after deducting the fees and costs charged against the 195
proceeds of the tax under this chapter, shall be for the use of 196
the state, and shall be paid into the state treasury to the 197
credit of the general revenue fund. 198
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Section 2. That existing sections 5731.02, 5731.47, and 200
5731.48 of the Revised Code are hereby repealed. 201
Section 3. Not later than July 31, 2000, the Tax 203
Commissioner shall estimate the amount, if any, by which fiscal 205
year 2001 GRF receipts from the tax levied under section 5731.02 206
of the Revised Code, as amended by this act, will be less than 207
the amount such receipts would be without the amendments to that
section by this act. 208
The Tax Commissioner, not later than July 31, 2000, shall 210
certify that amount to the Director of Budget and Management. 212
Notwithstanding division (B)(1) of section 131.44 of the Revised 213
Code, the Director shall subtract the amount so certified from 214
the amount of the fiscal year 2000 surplus revenue that otherwise 215
would be transferred to the Income Tax Reduction Fund under 216
division (B)(1)(b) of that section.
Section 4. That Section 3 of this act is hereby repealed 218
December 31, 2000. 219
Section 5. This act is hereby declared to be an emergency 221
measure necessary for the immediate preservation of the public 222
peace, health, and safety. The reason for such necessity is to 224
provide needed tax relief to the heirs of estates at the earliest 225
possible time. Therefore, this act shall go into immediate 226
effect.