As Passed by the Senate 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-RAY-GARDNER-SCHAFRATH-HORN-DiDONATO-KEARNS 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, and to reduce the share of the 17
estate tax paid to the state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 5731.02, 5731.47, and 5731.48 of 21
the Revised Code be amended to read as follows: 22
Sec. 5731.02. (A) AS USED IN THIS SECTION: 31
(1) "FEDERAL EXEMPTION AMOUNT" FOR A YEAR MEANS THE 33
"APPLICABLE EXCLUSION AMOUNT" FOR THAT YEAR AS PRESCRIBED IN 34
SECTION 2010 OF THE INTERNAL REVENUE CODE, 26 U.S.C.A. 2010. 39
(2) "CUMULATIVE TAX" MEANS FIFTEEN THOUSAND ONE HUNDRED 41
FOUR DOLLARS PLUS FOUR AND FORTY-EIGHT HUNDREDTHS PER CENT OF THE 42
EXCESS OF THE FEDERAL EXEMPTION AMOUNT OVER FIVE HUNDRED THOUSAND 43
DOLLARS.
(B) A tax is hereby levied on the transfer of the taxable 46
estate, determined as provided in section 5731.14 of the Revised 47
Code, of every person dying on or after July 1, 1968, who at the 48
time of his death was a resident of this state, as follows: 49
(1) FOR PERSONS DYING ON OR BEFORE DECEMBER 31, 2000: 52
If the taxable estate is: The tax shall be: 54
Not over $40,000 2% of the taxable estate 55
2
Over $ 40,000 but not over $800 plus 3% of the excess 56
$100,000 over $40,000 57
Over $100,000 but not over $2,600 plus 4% of the excess 58
$200,000 over $100,000 59
Over $200,000 but not over $6,600 plus 5% of the excess 61
$300,000 over $200,000
Over $300,000 but not over $11,600 plus 6% of the excess 63
$500,000 over $300,000
Over $500,000 $23,600 plus 7% of the excess 65
over $500,000.
(2) FOR PERSONS DYING ON OR AFTER JANUARY 1, 2001: 67
IF THE TAXABLE ESTATE IS: THE TAX SHALL BE: 70
NOT OVER $40,000 1.28% OF THE TAXABLE ESTATE 72
OVER $40,000 BUT NOT OVER $512 PLUS 1.92% OF THE EXCESS 74
$100,000 OVER $40,000
OVER $100,000 BUT NOT OVER $1,664 PLUS 2.56% OF THE 76
$200,000 EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $4,224 PLUS 3.2% OF THE EXCESS 78
$300,000 OVER $200,000
OVER $300,000 BUT NOT OVER $7,424 PLUS 3.84% OF THE 80
$500,000 EXCESS OVER $300,000
OVER $500,000 BUT NOT OVER THE $15,104 PLUS 4.48% OF THE 82
FEDERAL EXEMPTION AMOUNT EXCESS OVER $500,000
OVER THE FEDERAL EXEMPTION THE CUMULATIVE TAX PLUS 7% OF 84
AMOUNT THE EXCESS OVER THE FEDERAL
EXEMPTION AMOUNT 85
(B)(C) A credit shall be allowed against the tax imposed 88
by division (A)(B) of this section equal to the lesser of five 89
hundred ONE THOUSAND dollars or the amount of the tax. 91
Sec. 5731.47. The fees of the sheriff or other officers 100
for services performed under Chapter 5731. of the Revised Code, 102
and the expenses of the county auditor shall be certified by the 103
county auditor by a report filed with the tax commissioner. If 105
the tax commissioner finds that such fees and expenses are
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correct and reasonable in amount, he THE COMMISSIONER shall 106
indicate his approval OF THE FEES AND EXPENSES in writing to the 108
county auditor. The auditor shall pay such fees and expenses out
of the state's share of the undivided inheritance taxes in the 109
county treasury and draw his warrants payable from such taxes, on 111
the county treasurer in favor of the fee funds or officers 113
personally entitled thereto. IF THE FEES AND EXPENSES APPROVED 114
BY THE TAX COMMISSIONER EXCEED THE AMOUNT OF THE STATE'S SHARE OF 115
UNDIVIDED INHERITANCE TAXES IN THE COUNTY TREASURY, THE COUNTY 116
AUDITOR SHALL CERTIFY THE AMOUNT OF THE EXCESS TO THE TAX 117
COMMISSIONER, WHO SHALL CERTIFY THE AMOUNT TO THE DIRECTOR OF 118
BUDGET AND MANAGEMENT. THE DIRECTOR SHALL PROVIDE FOR PAYMENT OF 119
THE EXCESS FROM THE GENERAL REVENUE FUND TO THE COUNTY TREASURY, 120
AND THE COUNTY AUDITOR SHALL DRAW WARRANTS ON THE COUNTY
TREASURER IN FAVOR OF THE APPROPRIATE FEE FUNDS OR OFFICERS. 121
Sec. 5731.48. (A) If a decedent dies on or after July 1, 130
1989, AND BEFORE JANUARY 1, 2001, sixty-four per cent of the 132
gross amount of taxes levied and paid under this chapter shall be 135
for the use of the municipal corporation or township in which the 137
tax originates, and shall be credited as follows PROVIDED IN 138
DIVISION (A)(1), (2), OR (3) OF THIS SECTION: 139
(A)(1) To the general revenue fund in the case of a city; 141
(B)(2) To the general revenue fund of a village or to the 143
board of education of a village, for school purposes, as the 144
village council by resolution may approve; 145
(C)(3) To the general revenue fund or to the board of 147
education of the school district of which the township is a part, 148
for school purposes, as the board of township trustees by 149
resolution may approve, in the case of a township. 150
Where THE REMAINDER OF THE TAXES LEVIED AND PAID SHALL BE 153
FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE GENERAL 154
REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS CHARGED UNDER 155
SECTION 5731.47 OF THE REVISED CODE.
(B) IF A DECEDENT DIES ON OR AFTER JANUARY 1, 2001, ALL OF 158
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THE TAXES LEVIED AND PAID UNDER THIS CHAPTER ON THE PART OF THE 159
TAXABLE ESTATE THAT IS NOT IN EXCESS OF THE APPLICABLE EXCLUSION 160
AMOUNT PRESCRIBED IN SECTION 2010 OF THE INTERNAL REVENUE CODE, 162
26 U.S.C.A. 2010, FOR THE YEAR IN WHICH THE DECEDENT DIES SHALL 163
BE FOR THE USE OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH 164
THE TAX ORIGINATES AND CREDITED AS PROVIDED IN DIVISION (A)(1), 165
(2), OR (3) OF THIS SECTION; OF ANY TAXES LEVIED AND PAID ON THE 166
PART OF THE TAXABLE ESTATE IN EXCESS OF THE APPLICABLE EXCLUSION 168
AMOUNT, SIXTY-FOUR PER CENT SHALL BE FOR THE USE OF THE MUNICIPAL 170
CORPORATION OR TOWNSHIP IN WHICH THE TAX ORIGINATES AND CREDITED 171
AS PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS SECTION, AND 172
THE REMAINDER SHALL BE FOR THE USE OF THE STATE AND SHALL BE 173
CREDITED TO THE GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES 174
AND COSTS CHARGED UNDER SECTION 5731.47 OF THE REVISED CODE.
(C) IF a municipal corporation is in default with respect 177
to the principal or interest of any outstanding notes or bonds, 178
one half of the taxes distributed under this section shall be 179
credited to the sinking or bond retirement fund of the municipal 180
corporation, and the residue shall be credited to the general 181
revenue fund. 182
(D) The council, board of trustees, or other legislative 184
authority of a village or township may, by ordinance in the case 185
of a village, or by resolution in the case of a township, provide 186
that whenever there is money in the treasury of the village or 187
township from taxes levied under this chapter, not required for 188
immediate use, that money may be invested in federal, state, 189
county, or municipal bonds, upon which there has been no default 190
of the principal during the preceding five years. 191
The remainder of the taxes levied and paid under this 193
chapter, after deducting the fees and costs charged against the 194
proceeds of the tax under this chapter, shall be for the use of 195
the state, and shall be paid into the state treasury to the 196
credit of the general revenue fund. 197
Section 2. That existing sections 5731.02, 5731.47, and 199
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5731.48 of the Revised Code are hereby repealed. 200
Section 3. Not later than July 31, 2000, the Tax 202
Commissioner shall estimate the amount, if any, by which fiscal 204
year 2001 GRF receipts from the tax levied under section 5731.02 205
of the Revised Code, as amended by this act, will be less than 206
the amount such receipts would be without the amendments to that
section by this act. 207
The Tax Commissioner, not later than July 31, 2000, shall 209
certify that amount to the Director of Budget and Management. 211
Notwithstanding division (B)(1) of section 131.44 of the Revised 212
Code, the Director shall subtract the amount so certified from 213
the amount of the fiscal year 2000 surplus revenue that otherwise 214
would be transferred to the Income Tax Reduction Fund under 215
division (B)(1)(b) of that section.
Section 4. That Section 3 of this act is hereby repealed 217
December 31, 2000. 218