To amend sections 5731.02, 5731.18, 5731.181, 5731.47, and 5731.48 of the Revised Code to reduce the estate tax by thirty-six per cent over five years and to phase out the share of the estate tax paid to the state.

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

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

(1) FOR PERSONS DYING ON OR BEFORE DECEMBER 31, 1999:

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

(2) FOR PERSONS DYING IN CALENDAR YEAR 2000:

IF THE TAXABLE ESTATE IS:	THE TAX SHALL BE:
NOT OVER $40,000	1.856% OF THE TAXABLE ESTATE
OVER $40,000 BUT NOT OVER $100,000	$742.40 PLUS 2.784% OF THE EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $200,000	$2,412.80 PLUS 3.712% OF THE EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $300,000	$6,124.80 PLUS 4.64% OF THE EXCESS OVER $300,000
OVER $300,000 BUT NOT OVER $500,000	$10,764.80 PLUS 5.568% OF THE EXCESS OVER $300,000
OVER $500,000	$21,900.80 PLUS 6.496% OF THE EXCESS OVER $500,000

(3) FOR PERSONS DYING IN CALENDAR YEAR 2001:

IF THE TAXABLE ESTATE IS:	THE TAX SHALL BE:
NOT OVER $40,000	1.712% OF THE TAXABLE ESTATE
OVER $40,000 BUT NOT OVER $100,000	$684.80 PLUS 2.568% OF THE EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $200,000	$2,225.60 PLUS 3.424% OF THE EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $300,000	$5,649.60 PLUS 4.28% OF THE EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $500,000	$9,929.60 PLUS 5.136% OF THE EXCESS OVER $300,000
OVER $500,000	$20,201.60 PLUS 5.992% OF THE EXCESS OVER $500,000

(4) FOR PERSONS DYING IN CALENDAR YEAR 2002:

IF THE TAXABLE ESTATE IS:	THE TAX SHALL BE:
NOT OVER $40,000	1.568% OF THE TAXABLE ESTATE
OVER $40,000 BUT NOT OVER $100,000	$627.20 PLUS 2.352% OF THE EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $200,000	$2,038.40 PLUS 3.136% OF THE EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $300,000	$5,174.40 PLUS 3.92% OF THE EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $500,000	$9,094.40 PLUS 4.704% OF THE EXCESS OVER $300,000
OVER $500,000	$18,502.40 PLUS 5.488% OF THE EXCESS OVER $500,000

(5) FOR PERSONS DYING IN CALENDAR YEAR 2003:

IF THE TAXABLE ESTATE IS:	THE TAX SHALL BE:
NOT OVER $40,000	1.424% OF THE TAXABLE ESTATE
OVER $40,000 BUT NOT OVER $100,000	$569.60 PLUS 2.136% OF THE EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $200,000	$1,851.20 PLUS 2.848% OF THE EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $300,000	$4,699.20 PLUS 3.56% OF THE EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $500,000	$8,259.20 PLUS 4.272% OF THE EXCESS OVER $300,000
OVER $500,000	$16,803.20 PLUS 4.984% OF THE EXCESS OVER $500,000

(6) FOR PERSONS DYING ON OR AFTER JANUARY 1, 2004:

IF THE TAXABLE ESTATE IS:	THE TAX SHALL BE:
NOT OVER $40,000	1.28% OF THE TAXABLE ESTATE
OVER $40,000 BUT NOT OVER $100,000	$512 PLUS 1.92% OF THE EXCESS OVER $40,000
OVER $100,000 BUT NOT OVER $200,000	$1,664 PLUS 2.56% OF THE EXCESS OVER $100,000
OVER $200,000 BUT NOT OVER $300,000	$4,224 PLUS 3.2% OF THE EXCESS OVER $200,000
OVER $300,000 BUT NOT OVER $500,000	$7,424 PLUS 3.84% OF THE EXCESS OVER $300,000
OVER $500,000	$15,104 PLUS 4.48% OF THE EXCESS OVER $500,000

(B) A credit shall be allowed against the tax imposed by division (A) of this section equal to the lesser of five hundred dollars or the amount of the tax.

Sec. 5731.18. (A)(1) In addition to the tax levied by section 5731.02 of the Revised Code, AND SUBJECT TO DIVISION (A)(2) OF THIS SECTION, a tax is hereby levied upon the transfer of the estate of every person dying on or after July 1, 1968, who, at the time of his death was a resident of this state, in an amount equal to the maximum credit allowable by subtitle B, chapter CHAPTER 11 of the Internal Revenue Code of 1954, 26 U.S.C. 2011, as amended, for any taxes paid to any state.

(2) IN ORDER TO REDUCE THE TAX LEVIED BY DIVISION (A)(1) OF THIS SECTION BY THIRTY-SIX PER CENT OVER FIVE YEARS, THE TAX CALCULATED UNDER THAT DIVISION SHALL BE MULITIPLIED BY THE APPLICABLE FACTOR, AS FOLLOWS, TO DETERMINE THE TAX DUE:

IF THE PERSON DIED:	THE FACTOR SHALL BE:
IN CALENDAR YEAR 2000	.928
IN CALENDAR YEAR 2001	.856
IN CALENDAR YEAR 2002	.784
IN CALENDAR YEAR 2003	.712
ON OR AFTER JANUARY 1, 2004	.640

(B) The tax levied on any estate under this section shall be credited with the amount of the tax levied under section 5731.02 of the Revised Code and with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any state or territory of the United States or to the District of Columbia on any property included in the decedent's gross estate for federal estate tax purposes.

(C) The additional tax levied under this section shall be administered, collected, and paid as provided in section 5731.24 of the Revised Code.

Sec. 5731.181. (A) For purposes of this section, "generation-skipping transfer," "taxable distribution," and "taxable termination" have the same meaning as in Chapter 13 of subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718, 26 U.S.C. 2601-2624, as amended.

(B)(1)(a) A tax is hereby levied upon every generation-skipping transfer of property having a situs in this state, that occurs at the same time as, and as a result of, the death of an individual, in an amount equal to the credit allowed by Chapter 13 of subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718, 26 U.S.C. 2601-2624, as amended, MULITPLIED BY THE FACTOR SPECIFIED IN DIVISION (B)(1)(b) OF THIS SECTION, for any taxes paid to any state in respect of any property included in the generation-skipping transfer.

(b) IN ORDER TO REDUCE THE TAX LEVIED BY DIVISION (B)(1)(a) OF THIS SECTION BY THRITY-SIX PER CENT OVER FIVE YEARS, THE TAX CALCULATED UNDER THAT DIVISION SHALL BE MULTIPLIED BY THE APPLICABLE FACTOR, AS FOLLOWS, TO DETERMINE THE TAX DUE:

IF THE PERSON DIED:	THE FACTOR SHALL BE:
IN CALENDAR YEAR 2000	.928
IN CALENDAR YEAR 2001	.856
IN CALENDAR YEAR 2002	.784
IN CALENDAR YEAR 2003	.712
ON OR AFTER JANUARY 1, 2004	.640

(2) For purposes of this division, "property having a situs in this state" includes all the following:

(1)(a) Real property situated in this state;

(2)(b) Tangible personal property having an actual situs in this state;

(3)(c) Intangible personal property employed in carrying on a business in this state;

(4)(d) Intangible personal property owned by a trust, the trustee of which resides in or has its principal place of business in this state, or, if there is more than one trustee of the trust, the principal place of administration of which is in this state.

(C) The return with respect to the generation-skipping tax levied by division (B) of this section shall be filed in the form that the tax commissioner shall prescribe, on or before the day prescribed by law, including extensions, for filing the generation-skipping transfer tax return under Chapter 13 of subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718, 26 U.S.C. 2601-2624, as amended, for the same generation-skipping transfer. The return shall be filed by the distributee in the case of a taxable distribution and by the trustee in the case of a taxable termination.

(D) The generation-skipping tax levied by division (B) of this section shall be paid, without notice or demand by the tax commissioner, with the return, and shall be charged, collected, and administered in the same manner as estate taxes levied by this chapter. This chapter is generally applicable to, except to the extent it is inconsistent with the nature of, the generation-skipping tax.

(E) If another state levies a generation-skipping tax on a transfer described in division (B) of this section, the tax commissioner may enter into a compromise of the generation-skipping tax levied by division (B) of this section in the manner provided in section 5731.35 of the Revised Code, except that no approval of any probate court is required. If such a compromise agreement is made, no interest and penalties shall accrue for the period prior to the execution of the agreement and for sixty days after its execution.

Sec. 5731.47. The fees of the sheriff or other officers for services performed under Chapter 5731. of the Revised Code, and the expenses of the county auditor shall be certified by the county auditor by a report filed with the tax commissioner. If the tax commissioner finds that such fees and expenses are correct and reasonable in amount, he THE COMMISSIONER shall indicate his THE COMMISSIONER'S approval in writing to the county auditor. The auditor shall pay such fees and expenses out of the state's share of the undivided inheritance taxes in the county treasury and draw his warrants payable from such taxes, on the county treasurer in favor of the fee funds or officers personally entitled thereto. IF SUCH FEES AND EXPENSES EXCEED THE STATE'S SHARE OF THE TAXES, THE EXCESS SHALL BE PAID OUT OF THE SHARES OF THE MUNICIPAL CORPORATIONS AND TOWNSHIPS IN WHICH THE TAXES ORIGINATED IN PROPORTION TO SUCH SHARES.

Sec. 5731.48. If a decedent dies on or after July 1, 1989, sixty-four per cent A PERCENTAGE of the gross amount of taxes levied and paid under this chapter shall be for the use of the municipal corporation or township in which the tax originates, and. THE PERCENTAGE SHALL BE DETERMINED AS FOLLOWS:

IF THE DATE OF DEATH IS:	THE PERCENTAGE SHALL BE:
BEFORE JANUARY 1, 2000	64.0
DURING CALENDAR YEAR 2000	68.9
DURING CALENDAR YEAR 2001	74.8
DURING CALENDAR YEAR 2002	81.6
DURING CALENDAR YEAR 2003	89.9
ON OR AFTER JANUARY 1, 2004	100

THE AMOUNT TO BE USED BY THE MUNICIPAL CORPORATION OR TOWNSHIP shall be credited as follows:

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

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

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

Where a municipal corporation is in default with respect to the principal or interest of any outstanding notes or bonds, one half of the taxes distributed under this section shall be credited to the sinking or bond retirement fund of the municipal corporation, and the residue shall be credited to the general revenue fund.

The council, board of trustees, or other legislative authority of a village or township may, by ordinance in the case of a village, or by resolution in the case of a township, provide that whenever there is money in the treasury of the village or township from taxes levied under this chapter, not required for immediate use, that money may be invested in federal, state, county, or municipal bonds, upon which there has been no default of the principal during the preceding five years.

The remainder of the taxes levied and paid under this chapter, after deducting the fees and costs charged against the proceeds of the tax under this chapter, shall be for the use of the state, and shall be paid into the state treasury to the credit of the general revenue fund.

THE FEES AND COSTS CHARGED AGAINST THE PROCEEDS OF THE TAXES UNDER THIS CHAPTER SHALL BE CHARGED FIRST TO THE STATE'S SHARE OF THE PROCEEDS. IF THE COSTS AND FEES EXCEED THE STATE'S SHARE, THE EXCESS SHALL BE CHARGED TO THE SHARES OF THE MUNICIPAL CORPORATIONS AND TOWNSHIPS IN WHICH THE TAX ORIGINATED IN PROPORTION TO SUCH SHARES.