As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 61


Representatives Hottinger, Grossman 

Cosponsors: Representatives Adams, J., Huffman, Boose, Jordan, Uecker, Coley, Hackett, Stebelton, Bubp, Sears 

A BILL
To amend sections 5731.02, 5731.21, and 5731.48 and 1
to enact sections 5731.55 and 5731.56 of the 2
Revised Code to reduce the estate tax by 3
increasing the credit amount, to authorize 4
townships and municipal corporations, or electors 5
thereof by initiative, to exempt from the estate 6
tax any estate property located in the township or 7
municipal corporation, and to distribute all 8
estate tax revenue originating in a township or 9
municipal corporation that does not exempt 10
property from the tax to the township or municipal 11
corporation.12


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 5731.02, 5731.21, and 5731.48 be 13
amended and sections 5731.55 and 5731.56 of the Revised Code be 14
enacted to read as follows:15

       Sec. 5731.02.  (A) A tax is hereby levied on the transfer of 16
the taxable estate, determined as provided in section 5731.14 of 17
the Revised Code, of every person dying on or after July 1, 1968, 18
who at the time of death was a resident of this state, as follows:19

If the taxable estate is: The tax shall be: 20
Not over $40,000 2% of the taxable estate 21
Over $40,000 but not over $100,000 $800 plus 3% of the excess over $40,000 22
Over $100,000 but not over $200,000 $2,600 plus 4% of the excess over $100,000 23
Over $200,000 but not over $300,000 $6,600 plus 5% of the excess over $200,000 24
Over $300,000 but not over $500,000 $11,600 plus 6% of the excess over $300,000 25
Over $500,000 $23,600 plus 7% of the excess over $500,000. 26

       (B) A credit shall be allowed against the tax imposed by27
division (A) of this section equal to the lesser of five hundred 28
dollars or the amount of the tax for persons dying on or after29
July 1, 1968, but before January 1, 2001; the lesser of six 30
thousand six hundred dollars or the amount of the tax for persons 31
dying on or after January 1, 2001, but before January 1, 2002; or32
the lesser of thirteen thousand nine hundredfifteen thousand five 33
hundred seventy-five dollars or the amount of the tax for persons 34
dying on or after January 1, 2002July 1, 2009. In December of 35
each year, beginning in 2010, the tax commissioner shall compute 36
the percentage increase in the consumer price index for all urban 37
consumers (United States city average, all items) prepared by the 38
United States department of labor, bureau of labor statistics, for 39
the twelve-month period ending on the preceding thirtieth day of 40
September, and adjust the credit amount by multiplying the credit 41
amount for the current year by the percentage increase in the 42
consumer price index for that period, adding the resulting product 43
to the credit amount for the current year, and rounding upward to 44
the nearest multiple of five dollars. The resulting amount is the 45
credit amount for the estates of decedents dying in the ensuing 46
calendar year.47

       (C) If a resolution or ordinance adopted under section 48
5731.55 of the Revised Code is in effect on the date of the 49
decedent's death, the tax levied under this section on the 50
transfer of the decedent's estate shall be reduced by an amount 51
equal to the tax that originates in that township or municipal 52
corporation.53

       Sec. 5731.21.  (A)(1)(a) Except as provided under division54
(A)(3) of this section, the executor or administrator, or, if no55
executor or administrator has been appointed, another person in56
possession of property the transfer of which is subject to estate57
taxes under section 5731.02 or division (A) of section 5731.19 of58
the Revised Code, shall file an estate tax return, within nine59
months of the date of the decedent's death, in the form prescribed60
by the tax commissioner, in duplicate, with the probate court of61
the county. The return shall include all property the transfer of62
which is subject to estate taxes, whether that property is63
transferred under the last will and testament of the decedent or64
otherwise. The time for filing the return may be extended by the65
tax commissioner.66

       (b) The estate tax return described in division (A)(1)(a) of67
this section shall be accompanied by a certificate, in the form68
prescribed by the tax commissioner, that is signed by the69
executor, administrator, or other person required to file the70
return, and that statesincludes all of the following:71

       (i) The factA statement that the return was filed;72

       (ii) The date of the filing of the return;73

       (iii) The factA statement that the estate taxes under 74
section 5731.02 or division (A) of section 5731.19 of the Revised 75
Code, that are shown to be due in the return, have been paid in 76
full;77

       (iv) If applicable, the facta statement that real property 78
listed in the inventory for the decedent's estate is included in 79
the return;80

       (v) If applicable, the facta statement that real property 81
not listed in the inventory for the decedent's estate, including, 82
but not limited to, survivorship tenancy property as described in 83
section 5302.17 of the Revised Code or transfer on death property 84
as described in sections 5302.22 and 5302.23 of the Revised Code,85
also is included in the return. In this regard, the certificate86
additionally shall describe that real property by the same87
description used in the return;88

       (vi) If applicable, a list of all property in the inventory 89
exempted from estate tax under a resolution or ordinance adopted 90
pursuant to section 5731.55 of the Revised Code, and for each item 91
of property, the municipal corporation or township in which the 92
tax on the property would have originated if the property had not 93
been exempted.94

       (2) The probate court shall forward one copy of the estate95
tax return described in division (A)(1)(a) of this section to the96
tax commissioner.97

       (3) A person shall not be required to file a return under 98
division (A) of this section if the decedent was a resident of 99
this state and the value of the decedent's gross estate is 100
twenty-five thousand dollars or less in the case of a decedent 101
dying on or after July 1, 1968, but before January 1, 2001; two 102
hundred thousand dollars or less in the case of a decedent dying 103
on or after January 1, 2001, but before January 1, 2002; or three 104
hundred thirty-eight thousand three hundred thirty-threethree 105
hundred sixty-six thousand two hundred fifty dollars or less in 106
the case of a decedent dying on or after January 1, 2002July 1, 107
2009. In December of each year, beginning in 2010, after the tax 108
commissioner has adjusted the credit amount under division (B) of 109
section 5731.02 of the Revised Code, the commissioner shall 110
compute the taxable estate value upon which the tax imposed by 111
division (A) of that section, before applying the credit, equals 112
the credit amount computed under division (B) of that section. A 113
person is not required to file a return under division (A) of this 114
section if the decedent is a resident of this state, the decedent 115
dies in the following calendar year, and the value of the 116
decedent's gross estate is less than the value computed by the 117
commissioner.118

       (4)(a) Upon receipt of the estate tax return described in119
division (A)(1)(a) of this section and the accompanying120
certificate described in division (A)(1)(b) of this section, the121
probate court promptly shall give notice of the return, by a form122
prescribed by the tax commissioner, to the county auditor. The123
auditor then shall make a charge based upon the notice and shall124
certify a duplicate of the charge to the county treasurer. The125
treasurer then shall collect, subject to division (A) of section126
5731.25 of the Revised Code or any other statute extending the127
time for payment of an estate tax, the tax so charged.128

       (b) Upon receipt of the return and the accompanying129
certificate, the probate court also shall forward the certificate130
to the auditor. When satisfied that the estate taxes under section 131
5731.02 or division (A) of section 5731.19 of the Revised Code, 132
that are shown to be due in the return, have been paid in full, 133
the auditor shall stamp the certificate so forwarded to verify 134
that payment. The auditor then shall return the stamped135
certificate to the probate court.136

       (5)(a) The certificate described in division (A)(1)(b) of137
this section is a public record subject to inspection and copying138
in accordance with section 149.43 of the Revised Code. It shall be 139
kept in the records of the probate court pertaining to the140
decedent's estate and is not subject to the confidentiality141
provisions of section 5731.90 of the Revised Code.142

       (b) All persons are entitled to rely on the statements143
contained in a certificate as described in division (A)(1)(b) of144
this section if it has been filed in accordance with that145
division, forwarded to a county auditor and stamped in accordance146
with division (A)(4) of this section, and placed in the records of147
the probate court pertaining to the decedent's estate in148
accordance with division (A)(5)(a) of this section. The real149
property referred to in the certificate shall be free of, and may150
be regarded by all persons as being free of, any lien for estate151
taxes under section 5731.02 and division (A) of section 5731.19 of152
the Revised Code.153

       (B) An estate tax return filed under this section, in the154
form prescribed by the tax commissioner, and showing that no155
estate tax is due shall result in a determination that no estate156
tax is due, if the tax commissioner within three months after the157
receipt of the return by the department of taxation, fails to file158
exceptions to the return in the probate court of the county in159
which the return was filed. A copy of exceptions to a return of160
that nature, when the tax commissioner files them within that161
period, shall be sent by ordinary mail to the person who filed the162
return. The tax commissioner is not bound under this division by a 163
determination that no estate tax is due, with respect to property 164
not disclosed in the return.165

       (C) If the executor, administrator, or other person required166
to file an estate tax return fails to file it within nine months167
of the date of the decedent's death, the tax commissioner may168
determine the estate tax in that estate and issue a certificate of169
determination in the same manner as is provided in division (B) of170
section 5731.27 of the Revised Code. A certificate of171
determination of that nature has the same force and effect as172
though a return had been filed and a certificate of determination173
issued with respect to the return.174

       Sec. 5731.48.  (A) If a decedent dies on or after July 1, 175
1989, and before January 1, 2001, sixty-four per cent of the gross 176
amount of taxes levied and paid under this chapter shall be for 177
the use of the municipal corporation or township in which the tax 178
originates, and shall be credited as provided in division (A)(1), 179
(2), or (3) of this section:180

       (1) To the general revenue fund in the case of a city;181

       (2) To the general revenue fund of a village or to the board 182
of education of a village, for school purposes, as the village 183
council by resolution may approve;184

       (3) To the general revenue fund or to the board of education 185
of the school district of which the township is a part, for school 186
purposes, as the board of township trustees by resolution may 187
approve, in the case of a township.188

       The remainder of the taxes levied and paid shall be for the 189
use of the state and shall be credited to the general revenue 190
fund.191

       (B) If a decedent dies on or after January 1, 2001, and192
before January 1, 2002, seventyand before July 1, 2009, eighty193
per cent of the gross amount of taxes levied and paid under this 194
chapter shall be for the use of the municipal corporation or 195
township in which the tax originates and credited as provided in 196
division (A)(1), (2), or (3) of this section, and the remainder 197
shall be for the use of the state and credited to the general198
revenue fund.199

       (C) If a decedent dies on or after January 1, 2002, eighty200
July 1, 2009, one hundred per cent of the gross amount of taxes 201
levied and paid under this chapter, less any deduction from the 202
municipal corporation's or township's share of those taxes for 203
fees or expenses charged under section 5731.47 of the Revised 204
Code, shall be for the use of the municipal corporation or 205
township in which the tax originates and credited as provided in 206
division (A)(1), (2), or (3) of this section, and the remainder, 207
less any deduction from the state's share of those taxes for fees 208
or expenses charged under section 5731.47 of the Revised Code, 209
shall be for the use of the state and shall be credited to the 210
general revenue fund.211

       If a resolution or ordinance adopted under section 5731.55 of 212
the Revised Code is in effect on the date of the decedent's death, 213
no taxes shall be considered to have originated in that township 214
or municipal corporation for the purposes of this section.215

       (D) If a municipal corporation is in default with respect to216
the principal or interest of any outstanding notes or bonds, one217
half of the taxes distributed under this section shall be credited 218
to the sinking or bond retirement fund of the municipal219
corporation, and the residue shall be credited to the general220
revenue fund.221

       (E) The council, board of trustees, or other legislative222
authority of a village or township may, by ordinance in the case223
of a village, or by resolution in the case of a township, provide224
that whenever there is money in the treasury of the village or225
township from taxes levied under this chapter, not required for226
immediate use, that money may be invested in federal, state,227
county, or municipal bonds, upon which there has been no default228
of the principal during the preceding five years.229

       Sec. 5731.55. (A) Unless an ordinance or resolution 230
previously adopted under this section has been repealed by 231
initiative petition under section 5731.56 of the Revised Code, the 232
legislative authority of a municipal corporation may adopt an 233
ordinance or resolution, or the board of township trustees of a 234
township may adopt a resolution, exempting estate property in the 235
municipal corporation or township from the taxes levied under this 236
chapter. If the ordinance or resolution is adopted, the exemption 237
shall take effect as provided in the ordinance or resolution but 238
not before the first day of the first month that begins after the 239
ordinance or resolution is adopted.240

       (B)(1) An ordinance or resolution exempting estate property 241
in the municipal corporation from the taxes levied under this 242
chapter may be proposed by an initiative petition in accordance 243
with sections 731.28 and 731.31 to 731.40 of the Revised Code 244
except that, if the ordinance or resolution is adopted, the 245
exemption shall take effect as provided in the ordinance or 246
resolution but not before the first day of the first month that 247
begins after the ordinance or resolution is adopted.248

        (2) A resolution exempting estate property from the taxes 249
levied under this chapter may be proposed by an initiative 250
petition under the same circumstances and in the same manner as 251
provided by sections 731.28 and 731.31 to 731.40 of the Revised 252
Code for municipal corporations, except that each of the following 253
applies:254

        (a) The term "township" shall be substituted for the terms 255
"municipal corporation" and "city or village," the term "board of 256
township trustees" shall be substituted for "legislative authority 257
of the municipal corporation," the term "township fiscal officer" 258
shall be substituted for "city auditor" or "village clerk," and 259
the term "resolution" shall be substituted for "ordinance."260

       (b) The petition shall contain the signatures of not less 261
than ten per cent of the total number of electors in the 262
unincorporated area of the township who voted for the office of 263
governor at the most recent general election for that office in 264
that area of the township.265

        If the resolution is adopted, the exemption shall take effect 266
as provided in the resolution but not before the first day of the 267
first month that begins after the resolution is adopted.268

        (C) The form of the ballot in an election held pursuant to 269
division (B)(1) or (2) of this section shall be as follows, or in 270
any other form acceptable to the secretary of state:271

        "Shall the .......... (name of township or municipal 272
corporation) exempt estate property located in .......... (the 273
township or municipal corporation) from the Ohio estate tax?"274

       (D) If a resolution or ordinance is adopted under this 275
section, the legislative authority or board of township trustees 276
shall provide written notice of the adoption of the resolution or 277
ordinance to the tax commissioner within ten days after the date 278
of the adoption. The tax commissioner shall keep a record of all 279
municipal corporations and townships that have provided such a 280
notice, shall make the record available for public inspection, and 281
shall publish it in a manner convenient to the tax commissioner.282

       Sec. 5731.56. (A) If the legislative authority of a municipal 283
corporation or the board of township trustees of a township have 284
adopted a resolution or ordinance under division (A) of section 285
5731.55 of the Revised Code exempting estate property in the 286
municipal corporation or township from the taxes levied under this 287
chapter, the legislative authority or board of township trustees 288
may adopt a resolution or ordinance repealing the exemption. If 289
such a resolution or ordinance is adopted, the transfer of estate 290
property in the municipal corporation or township shall not be 291
exempted from the taxes levied under this chapter effective on the 292
date specified in the resolution or ordinance, but that date shall 293
not be earlier than the first day of the first month that begins 294
after the resolution or ordinance is adopted.295

       (B)(1) A resolution or ordinance repealing the exemption of 296
estate property from taxation enacted for a municipal corporation 297
under section 5731.55 of the Revised Code may be proposed by 298
initiative petition. The initiative petition shall be proposed in 299
accordance with sections 731.28 and 731.31 to 731.40 of the 300
Revised Code except that, if the resolution or ordinance is 301
adopted, the repeal of the exemption shall take effect as provided 302
in the resolution or ordinance, but not before the first day of 303
the first month that begins after the resolution or ordinance is 304
adopted.305

        (2) A resolution repealing the exemption of estate property 306
from taxation enacted for a township under section 5731.55 of the 307
Revised Code may be proposed by initiative petition. The 308
initiative petition shall be proposed under the same circumstances 309
and in the same manner as provided by sections 731.28 and 731.31 310
to 731.40 of the Revised Code for municipal corporations, except 311
as provided in division (B)(2)(a) and (b) of section 5731.55 of 312
the Revised Code. If the resolution is adopted, the repeal of the 313
exemption shall take effect as provided in the resolution, but not 314
before the first day of the first month that begins after the 315
resolution is adopted.316

        (C) The form of the ballot in an election held pursuant to 317
division (B)(1) or (2) of this section shall be as follows, or in 318
any other form acceptable to the secretary of state:319

       "Shall the exemption from the Ohio estate tax of estate 320
property in ........... (name of township or municipal 321
corporation) be repealed?"322

       (D) If a resolution or ordinance is adopted under this 323
section, the legislative authority or board of township trustees 324
shall provide written notice of the adoption of the resolution or 325
ordinance to the tax commissioner within ten days after the date 326
of the adoption. The tax commissioner shall remove the municipal 327
corporation or township from the record of municipal corporations 328
and townships that have adopted resolutions or ordinances under 329
section 5731.55 of the Revised Code.330

       Section 2. That existing sections 5731.02, 5731.21, and 331
5731.48 of the Revised Code are hereby repealed.332

       Section 3. The amendment by this act of sections 5731.02, 333
5731.21, and 5731.48 of the Revised Code applies to the estates of 334
decedents dying on or after July 1, 2009.335