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| To amend sections 5731.02, 5731.19, and 5731.21 of | 1 |
| the Revised Code to repeal the estate tax for the | 2 |
| estates of individuals dying on or after January | 3 |
| 1, 2013. | 4 |
| Section 1. That sections 5731.02, 5731.19, and 5731.21 of the | 5 |
| Revised Code be amended to read as follows: | 6 |
| Sec. 5731.02. (A) A tax is hereby levied on the transfer of | 7 |
| the taxable estate, determined as provided in section 5731.14 of | 8 |
| the Revised Code, of every person dying on or after July 1, 1968, | 9 |
| and before January 1, 2013, who at the time of death was a | 10 |
| resident of this state, as follows: | 11 |
| If the taxable estate is: | The tax shall be: | 12 | |
| Not over $40,000 | 2% of the taxable estate | 13 | |
| Over $40,000 but not over $100,000 | $800 plus 3% of the excess over $40,000 | 14 | |
| Over $100,000 but not over $200,000 | $2,600 plus 4% of the excess over $100,000 | 15 | |
| Over $200,000 but not over $300,000 | $6,600 plus 5% of the excess over $200,000 | 16 | |
| Over $300,000 but not over $500,000 | $11,600 plus 6% of the excess over $300,000 | 17 | |
| Over $500,000 | $23,600 plus 7% of the excess over $500,000. | 18 |
| (B) A credit shall be allowed against the tax imposed by | 19 |
| division (A) of this section equal to the lesser of five hundred | 20 |
| dollars or the amount of the tax for persons dying on or after | 21 |
| July 1, 1968, but before January 1, 2001; the lesser of six | 22 |
| thousand six hundred dollars or the amount of the tax for persons | 23 |
| dying on or after January 1, 2001, but before January 1, 2002; or | 24 |
| the lesser of thirteen thousand nine hundred dollars or the amount | 25 |
| of the tax for persons dying on or after January 1, 2002. | 26 |
| Sec. 5731.19. (A) A tax is hereby levied upon the transfer | 27 |
| of so much of the taxable estate of every person dying on or after | 28 |
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July 1, 1968, and before January 1, 2013, who, at the time of | 29 |
| death, was not a resident of this state, as consists of real | 30 |
| property situated in this state, tangible personal property having | 31 |
| an actual situs in this state, and intangible personal property | 32 |
| employed in carrying on a business within this state unless | 33 |
| exempted from tax under the provisions of section 5731.34 of the | 34 |
| Revised Code. | 35 |
| (B) The amount of the tax on such real and tangible personal | 36 |
| property shall be determined as follows: | 37 |
| (1) Determine the amount of tax which would be payable under | 38 |
| Chapter 5731. of the Revised Code if the decedent had died a | 39 |
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resident of this state with all | 40 |
| situated or located within this state; | 41 |
| (2) Multiply the tax so determined by a fraction, the | 42 |
| denominator of which shall be the value of the gross estate | 43 |
| wherever situated and the numerator of which shall be the said | 44 |
| gross estate value of the real property situated and the tangible | 45 |
| personal property having an actual situs in this state and | 46 |
| intangible personal property employed in carrying on a business | 47 |
| within this state and not exempted from tax under section 5731.34 | 48 |
| of the Revised Code. The product shall be the amount of tax | 49 |
| payable to this state. | 50 |
| (C) In addition to the tax levied by division (A) of this | 51 |
| section, an additional tax is hereby levied on such real and | 52 |
| tangible personal property determined as follows: | 53 |
| (1) Determine the amount of tax which would be payable under | 54 |
| division (A) of section 5731.18 of the Revised Code, if the | 55 |
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decedent had died a resident of this state with all | 56 |
| decedent's property situated or located within this state; | 57 |
| (2) Multiply the tax so determined by a fraction, the | 58 |
| denominator of which shall be the value of the gross estate | 59 |
| wherever situated and the numerator of which shall be the said | 60 |
| gross estate value of the real property situated and the tangible | 61 |
| property having an actual situs in this state and intangible | 62 |
| personal property employed in carrying on a business within this | 63 |
| state and not exempted from tax under section 5731.34 of the | 64 |
| Revised Code. The product so derived shall be credited with the | 65 |
| amount of the tax determined under division (B) of this section. | 66 |
| Sec. 5731.21. (A)(1)(a) Except as provided under division | 67 |
| (A)(3) of this section, the executor or administrator, or, if no | 68 |
| executor or administrator has been appointed, another person in | 69 |
| possession of property the transfer of which is subject to estate | 70 |
| taxes under section 5731.02 or division (A) of section 5731.19 of | 71 |
| the Revised Code, shall file an estate tax return, within nine | 72 |
| months of the date of the decedent's death, in the form prescribed | 73 |
| by the tax commissioner, in duplicate, with the probate court of | 74 |
| the county. The return shall include all property the transfer of | 75 |
| which is subject to estate taxes, whether that property is | 76 |
| transferred under the last will and testament of the decedent or | 77 |
| otherwise. The time for filing the return may be extended by the | 78 |
| tax commissioner. | 79 |
| (b) The estate tax return described in division (A)(1)(a) of | 80 |
| this section shall be accompanied by a certificate, in the form | 81 |
| prescribed by the tax commissioner, that is signed by the | 82 |
| executor, administrator, or other person required to file the | 83 |
| return, and that states all of the following: | 84 |
| (i) The fact that the return was filed; | 85 |
| (ii) The date of the filing of the return; | 86 |
| (iii) The fact that the estate taxes under section 5731.02 or | 87 |
| division (A) of section 5731.19 of the Revised Code, that are | 88 |
| shown to be due in the return, have been paid in full; | 89 |
| (iv) If applicable, the fact that real property listed in the | 90 |
| inventory for the decedent's estate is included in the return; | 91 |
| (v) If applicable, the fact that real property not listed in | 92 |
| the inventory for the decedent's estate, including, but not | 93 |
| limited to, survivorship tenancy property as described in section | 94 |
| 5302.17 of the Revised Code or transfer on death property as | 95 |
| described in sections 5302.22 and 5302.23 of the Revised Code, | 96 |
| also is included in the return. In this regard, the certificate | 97 |
| additionally shall describe that real property by the same | 98 |
| description used in the return. | 99 |
| (2) The probate court shall forward one copy of the estate | 100 |
| tax return described in division (A)(1)(a) of this section to the | 101 |
| tax commissioner. | 102 |
| (3) A person shall not be required to file a return under | 103 |
| division (A) of this section if the decedent was a resident of | 104 |
| this state and the value of the decedent's gross estate is | 105 |
| twenty-five thousand dollars or less in the case of a decedent | 106 |
| dying on or after July 1, 1968, but before January 1, 2001; two | 107 |
| hundred thousand dollars or less in the case of a decedent dying | 108 |
| on or after January 1, 2001, but before January 1, 2002; or three | 109 |
| hundred thirty-eight thousand three hundred thirty-three dollars | 110 |
| or less in the case of a decedent dying on or after January 1, | 111 |
| 2002. No return shall be filed for estates of decedents dying on | 112 |
| or after January 1, 2013. | 113 |
| (4)(a) Upon receipt of the estate tax return described in | 114 |
| division (A)(1)(a) of this section and the accompanying | 115 |
| certificate described in division (A)(1)(b) of this section, the | 116 |
| probate court promptly shall give notice of the return, by a form | 117 |
| prescribed by the tax commissioner, to the county auditor. The | 118 |
| auditor then shall make a charge based upon the notice and shall | 119 |
| certify a duplicate of the charge to the county treasurer. The | 120 |
| treasurer then shall collect, subject to division (A) of section | 121 |
| 5731.25 of the Revised Code or any other statute extending the | 122 |
| time for payment of an estate tax, the tax so charged. | 123 |
| (b) Upon receipt of the return and the accompanying | 124 |
| certificate, the probate court also shall forward the certificate | 125 |
| to the auditor. When satisfied that the estate taxes under section | 126 |
| 5731.02 or division (A) of section 5731.19 of the Revised Code, | 127 |
| that are shown to be due in the return, have been paid in full, | 128 |
| the auditor shall stamp the certificate so forwarded to verify | 129 |
| that payment. The auditor then shall return the stamped | 130 |
| certificate to the probate court. | 131 |
| (5)(a) The certificate described in division (A)(1)(b) of | 132 |
| this section is a public record subject to inspection and copying | 133 |
| in accordance with section 149.43 of the Revised Code. It shall be | 134 |
| kept in the records of the probate court pertaining to the | 135 |
| decedent's estate and is not subject to the confidentiality | 136 |
| provisions of section 5731.90 of the Revised Code. | 137 |
| (b) All persons are entitled to rely on the statements | 138 |
| contained in a certificate as described in division (A)(1)(b) of | 139 |
| this section if it has been filed in accordance with that | 140 |
| division, forwarded to a county auditor and stamped in accordance | 141 |
| with division (A)(4) of this section, and placed in the records of | 142 |
| the probate court pertaining to the decedent's estate in | 143 |
| accordance with division (A)(5)(a) of this section. The real | 144 |
| property referred to in the certificate shall be free of, and may | 145 |
| be regarded by all persons as being free of, any lien for estate | 146 |
| taxes under section 5731.02 and division (A) of section 5731.19 of | 147 |
| the Revised Code. | 148 |
| (B) An estate tax return filed under this section, in the | 149 |
| form prescribed by the tax commissioner, and showing that no | 150 |
| estate tax is due shall result in a determination that no estate | 151 |
| tax is due, if the tax commissioner within three months after the | 152 |
| receipt of the return by the department of taxation, fails to file | 153 |
| exceptions to the return in the probate court of the county in | 154 |
| which the return was filed. A copy of exceptions to a return of | 155 |
| that nature, when the tax commissioner files them within that | 156 |
| period, shall be sent by ordinary mail to the person who filed the | 157 |
| return. The tax commissioner is not bound under this division by a | 158 |
| determination that no estate tax is due, with respect to property | 159 |
| not disclosed in the return. | 160 |
| (C) If the executor, administrator, or other person required | 161 |
| to file an estate tax return fails to file it within nine months | 162 |
| of the date of the decedent's death, the tax commissioner may | 163 |
| determine the estate tax in that estate and issue a certificate of | 164 |
| determination in the same manner as is provided in division (B) of | 165 |
| section 5731.27 of the Revised Code. A certificate of | 166 |
| determination of that nature has the same force and effect as | 167 |
| though a return had been filed and a certificate of determination | 168 |
| issued with respect to the return. | 169 |
| Section 2. That existing sections 5731.02, 5731.19, and | 170 |
| 5731.21 of the Revised Code are hereby repealed. | 171 |