As Passed by the House 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
REPRESENTATIVES COUGHLIN-WILSON-PERRY-BOYD-OGG-BARRETT-SULLIVAN- 11
CORBIN-MEAD-AMSTUTZ-WOMER BENJAMIN-MOTTLEY-KREBS-DAMSCHRODER- 12
EVANS-HOOPS-METZGER-NETZLEY-PETERSON-O'BRIEN-STAPLETON-CAREY- 13
KILBANE-WIDENER-ASLANIDES-GRENDELL-TIBERI-WILLAMOWSKI-MYERS- 15
A. CORE-CALLENDER-FLANNERY-TRAKAS-METTLER-OLMAN-TERWILLEGER-
BUEHRER-JOLIVETTE-CALVERT-JACOBSON-JORDAN-WINKLER-HARRIS-REDFERN- 16
ROBINSON-AUSTRIA-WILLIAMS-BRADING-HOLLISTER-GOODING- 18
D. MILLER-DePIERO-HARTNETT-DISTEL-SULZER-BUCHY-VESPER-
STEVENS-METELSKY-PRINGLE-CLANCY-ROBERTS-SCHULER-VAN VYVEN- 19
HOUSEHOLDER-JERSE-CATES-BARNES-ROMAN-YOUNG-PATTON-GARDNER- 20
VERICH-BRITTON-ALLEN-SALERNO 21
_________________________________________________________________ 22
A B I L L
To amend sections 1339.412, 5731.02, 5731.14, 24
5731.21, 5731.47, and 5731.48 and to enact 25
section 5731.20 of the Revised Code to reduce the
estate tax by increasing the credit amount, to 26
exempt the value of family-owned businesses from 27
the estate tax when such a business passes to
family members, to reduce the share of the estate 28
tax paid to the state, and to specify that a
trustee of a trust qualifying for the estate tax 30
marital deduction has a duty to annually 31
distribute income from an IRA to the surviving
spouse.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 33
2
Section 1. That sections 1339.412, 5731.02, 5731.14, 35
5731.21, 5731.47, and 5731.48 be amended and section 5731.20 of 36
the Revised Code be enacted to read as follows: 37
Sec. 1339.412. (A) Except as provided in division (B) of 47
this section, an instrument that creates an inter vivos or 48
testamentary trust shall not require or permit the accumulation 49
for more than one year of any income of property that satisfies 51
both of the following:
(1) The property is granted to a surviving spouse of the 53
testator or other settlor. 54
(2) The property qualifies for the federal estate tax 56
marital deduction allowed by subtitle B, Chapter 11 of the 58
"Internal Revenue Code of 1986," 26 U.S.C. 2056, as amended, or 63
the estate tax marital deduction allowed by division (A) of 64
section 5731.15 of the Revised Code. 65
(B)(1) Division (A) of this section does not apply if an 68
instrument that creates an inter vivos or testamentary trust 69
expressly states the intention of the testator or other settlor 70
that obtaining a marital deduction as described in division 71
(A)(2) of this section is less important than requiring or 72
permitting the accumulation of income of property in accordance 74
with a provision in the instrument that requires or permits the 75
accumulation for more than one year of any income of property. 76
(2) Division (A) of this section does not apply to any 79
beneficiary of an inter vivos or testamentary trust other than 80
the surviving spouse of the testator or other settlor or to any
inter vivos or testamentary trust of which the surviving spouse 81
of the testator or other settlor is a beneficiary if an interest 82
in property does not qualify for a marital deduction as described 83
in division (A)(2) of this section. 84
(C)(1) THE TRUSTEE OF A TRUST THAT QUALIFIES FOR AN ESTATE 86
TAX MARITAL DEDUCTION FOR FEDERAL OR OHIO ESTATE TAX PURPOSES AND 88
THAT IS THE BENEFICIARY OF AN INDIVIDUAL RETIREMENT ACCOUNT HAS A
FIDUCIARY DUTY, IN REGARD TO THE INCOME DISTRIBUTION PROVISION OF 89
3
THE TRUST, TO WITHDRAW AND DISTRIBUTE THE INCOME OF THE 90
INDIVIDUAL RETIREMENT ACCOUNT, AT LEAST ANNUALLY, TO THE 91
SURVIVING SPOUSE OF THE TESTATOR OR OTHER SETTLOR.
(2) A TRUSTEE'S FIDUCIARY DUTY AS DESCRIBED IN DIVISION 93
(C)(1) OF THIS SECTION IS SATISFIED IF THE TERMS OF THE TRUST 94
INSTRUMENT EXPRESSLY PROVIDE THE SURVIVING SPOUSE A RIGHT TO 95
WITHDRAW ALL OF THE ASSETS FROM THE TRUST OR A RIGHT TO COMPEL 96
THE TRUSTEE TO WITHDRAW AND DISTRIBUTE THE INCOME OF THE 97
INDIVIDUAL RETIREMENT ACCOUNT TO THE SURVIVING SPOUSE. 98
(D) Divisions (A) and, (B), AND (C)(1) of this section are 102
intended to codify certain EXISTING fiduciary and trust law 103
principles relating to the interpretation of a testator's or 104
other settlor's intent with respect to the INCOME provisions of a 105
trust. Divisions (A) and, (B), AND (C) of this section apply to 107
trust instruments executed prior to and existing on the effective 108
date of this section, unless the OCTOBER 1, 1996, OR EXECUTED 109
THEREAFTER. THE trustee of a trust of that nature DESCRIBED IN 111
DIVISION (A) OR (B) OF THIS SECTION, in a written trust 112
amendment, elects to do otherwise MAY ELECT TO NOT APPLY 113
DIVISIONS (A) AND (B) OF THIS SECTION TO THE TRUST. Any election 115
of that nature, when made, is irrevocable.
Sec. 5731.02. (A) A tax is hereby levied on the transfer 124
of the taxable estate, determined as provided in section 5731.14 125
of the Revised Code, of every person dying on or after July 1, 126
1968, who at the time of his death was a resident of this state, 127
as follows: 128
If the taxable estate is: The tax shall be: 130
Not over $40,000 2% of the taxable estate 131
Over $ 40,000 but not over $800 plus 3% of the excess 132
$100,000 over $40,000 133
Over $100,000 but not over $2,600 plus 4% of the excess 134
$200,000 over $100,000 135
Over $200,000 but not over $6,600 plus 5% of the excess 137
$300,000 over $200,000
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Over $300,000 but not over $11,600 plus 6% of the excess 139
$500,000 over $300,000
Over $500,000 $23,600 plus 7% of the excess 141
over $500,000.
(B) A credit shall be allowed against the tax imposed by 143
division (A) of this section equal to the lesser of five hundred 145
dollars or the amount of the tax FOR PERSONS DYING ON OR AFTER 146
JULY 1, 1968, BUT BEFORE JANUARY 1, 2001; THE LESSER OF SIX 147
THOUSAND SIX HUNDRED DOLLARS OR THE AMOUNT OF THE TAX FOR PERSONS 149
DYING ON OR AFTER JANUARY 1, 2001, BUT BEFORE JANUARY 1, 2002; OR 150
THE LESSER OF THIRTEEN THOUSAND NINE HUNDRED DOLLARS OR THE 152
AMOUNT OF THE TAX FOR PERSONS DYING ON OR AFTER JANUARY 1, 2002. 154
Sec. 5731.14. For purposes of the tax levied by section 163
5731.02 of the Revised Code, the value of the taxable estate 164
shall be determined by deducting from the value of the gross 165
estate deductions provided for in sections 5731.15 to 5731.17 AND 166
5731.20 of the Revised Code.
Sec. 5731.20. (A) AS USED IN THIS SECTION: 168
(1) "TAX DIFFERENTIAL WITH RESPECT TO THE ESTATE" MEANS 170
THE EXCESS OF (a) THE AMOUNT THAT THE ESTATE TAX LIABILITY WOULD 171
BE UNDER SECTION 5731.02 OF THE REVISED CODE IF THE DEDUCTION 173
UNDER THIS SECTION HAD NOT BEEN DEDUCTED FROM THE VALUE OF THE 174
GROSS ESTATE, OVER (b) THE ESTATE TAX LIABILITY UNDER THAT 175
SECTION AFTER THE DEDUCTION UNDER THIS SECTION. 176
(2) "TAX DIFFERENTIAL ATTRIBUTABLE TO A QUALIFIED 178
FAMILY-OWNED BUSINESS INTEREST" MEANS AN AMOUNT THAT BEARS THE 179
SAME RATIO TO THE TAX DIFFERENTIAL WITH RESPECT TO THE ESTATE AS 180
THE VALUE OF THAT INTEREST BEARS TO THE VALUE OF ALL QUALIFIED 181
FAMILY-OWNED BUSINESS INTERESTS THAT ARE INCLUDED IN THE VALUE OF 182
THE GROSS ESTATE FOR THE PURPOSES OF SECTION 2057(b) OF THE 183
INTERNAL REVENUE CODE. 184
(3) ANY TERM USED IN THIS SECTION HAS THE SAME MEANING AS 186
USED IN SECTION 2057 OF THE INTERNAL REVENUE CODE EXCEPT AS 188
OTHERWISE PROVIDED IN THIS SECTION.
5
(B) THIS SECTION APPLIES TO THE ESTATES OF DECEDENTS DYING 190
ON OR AFTER JANUARY 1, 2001. 191
FOR THE PURPOSES OF THE TAX LEVIED UNDER SECTION 5731.02 OF 193
THE REVISED CODE, THE VALUE OF THE TAXABLE ESTATE SHALL BE 194
DETERMINED BY DEDUCTING FROM THE VALUE OF THE GROSS ESTATE THE 195
ADJUSTED VALUE OF ANY QUALIFIED FAMILY-OWNED BUSINESS INTEREST 196
DEDUCTIBLE FROM THE VALUE OF THE FEDERAL GROSS ESTATE UNDER 197
SECTION 2057 OF THE INTERNAL REVENUE CODE, TO THE EXTENT THE 199
AMOUNT DEDUCTIBLE UNDER THAT SECTION IS INCLUDED IN THE VALUE OF
THE GROSS ESTATE AS DEFINED IN SECTION 5731.01 OF THE REVISED 200
CODE AND NOT OTHERWISE DEDUCTED IN THE DETERMINATION OF THE 201
TAXABLE ESTATE. THE DEDUCTION SHALL BE MADE ONLY IF ELECTED 202
PURSUANT TO DIVISION (D) OF THIS SECTION, BUT MAY BE MADE 203
REGARDLESS OF WHETHER A DEDUCTION IS MADE FOR FEDERAL ESTATE TAX 204
PURPOSES UNDER SECTION 2057 OF THE INTERNAL REVENUE CODE. 205
(C) IF ANY OF THE EVENTS THAT WOULD CAUSE ADDITIONAL 208
FEDERAL ESTATE TAX TO BE IMPOSED PURSUANT TO SECTION 2057(f) OF 209
THE INTERNAL REVENUE CODE OCCUR WITHIN TEN YEARS AFTER THE DATE 211
OF THE DECEDENT'S DEATH AND BEFORE THE DEATH OF THE QUALIFIED 212
HEIR, AN ADDITIONAL ESTATE TAX IS HEREBY IMPOSED. THE ADDITIONAL 213
TAX SHALL EQUAL THE SUM OF THE FOLLOWING: 214
(1) THE APPLICABLE PERCENTAGE, AS DETERMINED UNDER SECTION 216
2057(f) OF THE INTERNAL REVENUE CODE, OF THE TAX DIFFERENTIAL 218
ATTRIBUTABLE TO THE QUALIFIED FAMILY-OWNED BUSINESS INTEREST 219
ACQUIRED BY OR PASSING TO THE QUALIFIED HEIR; 220
(2) INTEREST ON THE AMOUNT DETERMINED UNDER DIVISION 222
(C)(1) OF THIS SECTION AT THE RATE DETERMINED UNDER SECTION 223
5703.47 OF THE REVISED CODE FOR THE PERIOD BEGINNING ON THE DATE 224
THE ESTATE TAX LIABILITY WAS DUE UNDER SECTION 5731.02 OF THE 225
REVISED CODE AND ENDING ON THE DATE THE ADDITIONAL ESTATE TAX IS 226
DUE.
THE ADDITIONAL TAX IS DUE ON THE FIRST DAY OF THE SEVENTH 228
MONTH AFTER THE EVENT CAUSING THE IMPOSITION OF ADDITIONAL 229
FEDERAL ESTATE TAX OCCURS. 230
6
THE QUALIFIED HEIR IS PERSONALLY LIABLE FOR THE ADDITIONAL 232
TAX IMPOSED UNDER THIS DIVISION. 233
(D) THE ELECTION TO MAKE THE DEDUCTION PROVIDED IN THIS 235
SECTION SHALL BE MADE ON THE RETURN FILED PURSUANT TO SECTION 236
5731.21 OF THE REVISED CODE AND AS PRESCRIBED BY RULE OF THE TAX 237
COMMISSIONER. THE ELECTION, ONCE MADE, IS IRREVOCABLE. 240
AN ELECTION MAY BE MADE UNDER THIS SECTION WITH RESPECT TO 242
A QUALIFIED FAMILY-OWNED BUSINESS INTEREST ONLY IF EACH PERSON IN 243
BEING HAVING AN INTEREST IN ANY PROPERTY DESIGNATED IN THE 244
AGREEMENT CONSENTS TO THE APPLICATION OF DIVISION (C) OF THIS 245
SECTION WITH RESPECT TO SUCH PROPERTY BY WRITTEN AGREEMENT SIGNED 246
BY EACH SUCH PERSON, UNDER RULES OF THE TAX COMMISSIONER. THE 247
TAX COMMISSIONER MAY EXTEND THE TIME FOR SUBMITTING THE 248
INFORMATION AND ANY SIGNATURES REQUIRED TO MAKE AN ELECTION UNDER 249
THIS DIVISION.
(E) IF SECTION 2057(g) OF THE INTERNAL REVENUE CODE WOULD 254
APPLY TO A QUALIFIED HEIR, ANY INTEREST PASSING TO THAT HEIR MAY
BE TREATED AS A QUALIFIED FAMILY-OWNED BUSINESS INTEREST UNDER 256
THIS SECTION ONLY IF THE INTEREST PASSES, IS ACQUIRED, OR IS HELD 257
IN A QUALIFIED TRUST AS DEFINED IN SECTION 2057(g) OF THE 258
INTERNAL REVENUE CODE. 259
Sec. 5731.21. (A)(1)(a) Except as provided under division 268
(A)(3) of this section, the executor or administrator, or, if no 269
executor or administrator has been appointed, then such other 270
person in possession of property, the transfer of which is 271
subject to estate taxes under section 5731.02 or division (A) of 272
section 5731.19 of the Revised Code, shall file an estate tax 273
return, within nine months of the date of the decedent's death, 274
in the form prescribed by the tax commissioner, in duplicate, 275
with the probate court of the county. The return shall include 276
all property the transfer of which is subject to estate taxes, 277
whether such property is transferred under the last will and 278
testament of the decedent or otherwise. The time for filing the 279
return may be extended by the tax commissioner. 280
7
(b) The estate tax return described in division (A)(1)(a) 282
of this section shall be accompanied by a certificate, in the 283
form prescribed by the tax commissioner, that is signed by the 284
executor, administrator, or other person required to file the 285
return, and that states all of the following: 286
(i) The fact that the return was filed; 288
(ii) The date of the filing of the return; 290
(iii) The fact that the estate taxes under section 5731.02 292
or division (A) of section 5731.19 of the Revised Code, that are 293
shown to be due in the return, have been paid in full; 294
(iv) If applicable, the fact that real property listed in 296
the inventory for the decedent's estate is included in the 297
return; 298
(v) If applicable, the fact that real property not listed 300
in the inventory for the decedent's estate, including, but not 301
limited to, survivorship tenancy property as described in section 302
5302.17 of the Revised Code, also is included in the return. In 303
this regard, the certificate additionally shall describe that 304
real property by the same description used in the return. 305
(2) The probate court shall forward one copy of the estate 307
tax return described in division (A)(1)(a) of this section to the 308
tax commissioner. 309
(3) If the value of the gross estate of the decedent is 311
twenty-five thousand dollars or less and the decedent was a 312
resident of this state, the A person otherwise required to file a 314
return may file a return, but shall not be required to do so, 316
FILE A RETURN UNDER DIVISION (A) OF THIS SECTION IF THE DECEDENT 317
WAS A RESIDENT OF THIS STATE AND THE VALUE OF THE DECEDENT'S 319
GROSS ESTATE IS TWENTY-FIVE THOUSAND DOLLARS OR LESS IN THE CASE 320
OF A DECEDENT DYING ON OR AFTER JULY 1, 1968, BUT BEFORE JANUARY 321
1, 2001; TWO HUNDRED THOUSAND DOLLARS OR LESS IN THE CASE OF A 322
DECEDENT DYING ON OR AFTER JANUARY 1, 2001, BUT BEFORE JANUARY 1, 324
2002; OR THREE HUNDRED THIRTY-EIGHT THOUSAND DOLLARS OR LESS IN
THE CASE OF A DECEDENT DYING ON OR AFTER JANUARY 1, 2002. 325
8
(4)(a) Upon receipt of the estate tax return described in 327
division (A)(1)(a) of this section and the accompanying 328
certificate described in division (A)(1)(b) of this section, the 329
probate court promptly shall give notice of the return, by a form 330
prescribed by the tax commissioner, to the county auditor. The 331
auditor then shall make a charge based upon the notice and shall 332
certify a duplicate of the charge to the county treasurer. The 333
treasurer then shall collect, subject to division (A) of section 334
5731.25 of the Revised Code or any other statute extending the 335
time for payment of an estate tax, the tax so charged. 336
(b) Upon receipt of the return and the accompanying 338
certificate, the probate court also shall forward the certificate 339
to the auditor. When satisfied that the estate taxes under 340
section 5731.02 or division (A) of section 5731.19 of the Revised 341
Code, that are shown to be due in the return, have been paid in 342
full, the auditor shall stamp the certificate so forwarded to 343
verify that payment. The auditor then shall return the stamped 344
certificate to the probate court. 345
(5)(a) The certificate described in division (A)(1)(b) of 347
this section is a public record subject to inspection and copying 348
in accordance with section 149.43 of the Revised Code. It shall 349
be kept in the records of the probate court pertaining to the 350
decedent's estate and is not subject to the confidentiality 351
provisions of section 5731.90 of the Revised Code. 352
(b) All persons are entitled to rely on the statements 354
contained in a certificate as described in division (A)(1)(b) of 355
this section if it has been filed in accordance with that 356
division, forwarded to a county auditor and stamped in accordance 357
with division (A)(4) of this section, and placed in the records 358
of the probate court pertaining to the decedent's estate in 359
accordance with division (A)(5)(a) of this section. The real 360
property referred to in the certificate shall be free of, and may 361
be regarded by all persons as being free of, any lien for estate 362
taxes under section 5731.02 and division (A) of section 5731.19 363
9
of the Revised Code. 364
(B) An estate tax return filed under this section, in the 366
form prescribed by the tax commissioner, and showing that no 367
estate tax is due shall result in a determination that no estate 368
tax is due, if the tax commissioner within three months after the 369
receipt of the return by the department of taxation, fails to 370
file exceptions to the return in the probate court of the county 371
in which the return was filed. A copy of exceptions to such a 372
return, when the tax commissioner files them within that period, 373
shall be sent by ordinary mail to the person who filed the 374
return. The tax commissioner is not bound under this division by 375
a determination that no estate tax is due, with respect to 376
property not disclosed in the return. 377
(C) If the executor, administrator, or other person 379
required to file an estate tax return fails to file it within 380
nine months of the date of the decedent's death, the tax 381
commissioner may determine the estate tax in such estate and 382
issue a certificate of determination in the same manner as is 383
provided in division (B) of section 5731.27 of the Revised Code. 384
Such certificate of determination has the same force and effect 385
as though a return had been filed and a certificate of 386
determination issued with respect to the return. 387
Sec. 5731.47. The fees of the sheriff or other officers 396
for services performed under Chapter 5731. of the Revised Code, 398
and the expenses of the county auditor shall be certified by the 399
county auditor by a report filed with the tax commissioner. If 401
the tax commissioner finds that such fees and expenses are
correct and reasonable in amount, he THE COMMISSIONER shall 402
indicate his approval OF THE FEES AND EXPENSES in writing to the 404
county auditor. The auditor shall pay such fees and expenses out
of the state's share of the undivided inheritance taxes in the 405
county treasury and draw his warrants payable from such taxes, on 407
the county treasurer in favor of the fee funds or officers 409
personally entitled thereto. IF THE FEES AND EXPENSES APPROVED 410
10
BY THE TAX COMMISSIONER EXCEED THE AMOUNT OF THE STATE'S SHARE OF 411
UNDIVIDED INHERITANCE TAXES IN THE COUNTY TREASURY, THE COUNTY 412
AUDITOR SHALL CERTIFY THE AMOUNT OF THE EXCESS TO THE TAX 413
COMMISSIONER, WHO SHALL CERTIFY THE AMOUNT TO THE DIRECTOR OF 414
BUDGET AND MANAGEMENT. THE DIRECTOR SHALL PROVIDE FOR PAYMENT OF 415
THE EXCESS FROM THE GENERAL REVENUE FUND TO THE COUNTY TREASURY, 416
AND THE COUNTY AUDITOR SHALL DRAW WARRANTS ON THE COUNTY
TREASURER IN FAVOR OF THE APPROPRIATE FEE FUNDS OR OFFICERS. 417
Sec. 5731.48. (A) If a decedent dies on or after July 1, 426
1989, AND BEFORE JANUARY 1, 2001, sixty-four per cent of the 428
gross amount of taxes levied and paid under this chapter shall be 431
for the use of the municipal corporation or township in which the 433
tax originates, and shall be credited as follows PROVIDED IN 434
DIVISION (A)(1), (2), OR (3) OF THIS SECTION: 435
(A)(1) To the general revenue fund in the case of a city; 437
(B)(2) To the general revenue fund of a village or to the 439
board of education of a village, for school purposes, as the 440
village council by resolution may approve; 441
(C)(3) To the general revenue fund or to the board of 443
education of the school district of which the township is a part, 444
for school purposes, as the board of township trustees by 445
resolution may approve, in the case of a township. 446
Where THE REMAINDER OF THE TAXES LEVIED AND PAID SHALL BE 449
FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE GENERAL 450
REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS CHARGED UNDER 451
SECTION 5731.47 OF THE REVISED CODE.
(B) IF A DECEDENT DIES ON OR AFTER JANUARY 1, 2001, AND 453
BEFORE JANUARY 1, 2002, SEVENTY PER CENT OF THE GROSS AMOUNT OF 455
TAXES LEVIED AND PAID UNDER THIS CHAPTER SHALL BE FOR THE USE OF 457
THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE TAX ORIGINATES 458
AND CREDITED AS PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS 459
SECTION, AND THE REMAINDER SHALL BE FOR THE USE OF THE STATE AND 460
CREDITED TO THE GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES 462
AND COSTS CHARGED UNDER SECTION 5731.47 OF THE REVISED CODE.
11
(C) IF A DECEDENT DIES ON OR AFTER JANUARY 1, 2002, EIGHTY 465
PER CENT OF THE GROSS AMOUNT OF TAXES LEVIED AND PAID UNDER THIS 466
CHAPTER SHALL BE FOR THE USE OF THE MUNICIPAL CORPORATION OR 468
TOWNSHIP IN WHICH THE TAX ORIGINATES AND CREDITED AS PROVIDED IN 469
DIVISION (A)(1), (2), OR (3) OF THIS SECTION, AND THE REMAINDER 470
SHALL BE FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE 471
GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS 472
CHARGED UNDER SECTION 5731.47 OF THE REVISED CODE.
(D) IF a municipal corporation is in default with respect 475
to the principal or interest of any outstanding notes or bonds, 476
one half of the taxes distributed under this section shall be 477
credited to the sinking or bond retirement fund of the municipal 478
corporation, and the residue shall be credited to the general 479
revenue fund. 480
(E) The council, board of trustees, or other legislative 482
authority of a village or township may, by ordinance in the case 483
of a village, or by resolution in the case of a township, provide 484
that whenever there is money in the treasury of the village or 485
township from taxes levied under this chapter, not required for 486
immediate use, that money may be invested in federal, state, 487
county, or municipal bonds, upon which there has been no default 488
of the principal during the preceding five years. 489
The remainder of the taxes levied and paid under this 491
chapter, after deducting the fees and costs charged against the 492
proceeds of the tax under this chapter, shall be for the use of 493
the state, and shall be paid into the state treasury to the 494
credit of the general revenue fund. 495
Section 2. That existing sections 1339.412, 5731.02, 497
5731.14, 5731.21, 5731.47, and 5731.48 of the Revised Code are 498
hereby repealed.
Section 3. No later than December 1, 2001, the members of 501
the Joint Committee on Estate and Death Taxes, which is hereby 502
created, shall report to the Governor and to the majority and
minority leaders of both the House of Representatives and Senate 503
12
on a proposal to eliminate or phase out all remaining estate 504
taxes by 2006. This proposal shall move Ohio toward a true 505
"pick-up tax" or "sponge tax" and shall incorporate any effort by 506
the federal government to expedite the elimination of, or 507
eliminate entirely, federal estate tax. The Joint Committee on
Estate and Death Taxes shall be comprised of six members, three 508
from each house, with two from the majority party and one from 509
the minority party. The committee shall choose co-chairs, one 510
from each house. The committee shall take into consideration 511
testimony presented to it. The committee shall cease to exist
after it issues its report. 512