To amend sections 5731.02, 5731.47, and 5731.48 of the Revised Code and to repeal Section 3 of this act (effective December 31, 2000) to reduce the estate tax by reducing rates and increasing the credit amount, to reduce the share of the estate tax paid to the state, and to declare an emergency.

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

Sec. 5731.02. (A) AS USED IN THIS SECTION:

(1) "FEDERAL EXEMPTION AMOUNT" FOR A YEAR MEANS THE "APPLICABLE EXCLUSION AMOUNT" FOR THAT YEAR AS PRESCRIBED IN SECTION 2010 OF THE INTERNAL REVENUE CODE, 26 U.S.C.A. 2010.

(2) "CUMULATIVE TAX" MEANS FIFTEEN THOUSAND ONE HUNDRED FOUR DOLLARS PLUS FOUR AND FORTY-EIGHT HUNDREDTHS PER CENT OF THE EXCESS OF THE FEDERAL EXEMPTION AMOUNT OVER FIVE HUNDRED THOUSAND DOLLARS.

(B) 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, 2000:

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 ON OR AFTER JANUARY 1, 2001:

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 BUT NOT OVER THE FEDERAL EXEMPTION AMOUNT	$15,104 PLUS 4.48% OF THE EXCESS OVER $500,000
OVER THE FEDERAL EXEMPTION AMOUNT	THE CUMULATIVE TAX PLUS 7% OF THE EXCESS OVER THE FEDERAL EXEMPTION AMOUNT

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

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 approval OF THE FEES AND EXPENSES 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 THE FEES AND EXPENSES APPROVED BY THE TAX COMMISSIONER EXCEED THE AMOUNT OF THE STATE'S SHARE OF UNDIVIDED INHERITANCE TAXES IN THE COUNTY TREASURY, THE COUNTY AUDITOR SHALL CERTIFY THE AMOUNT OF THE EXCESS TO THE TAX COMMISSIONER, WHO SHALL CERTIFY THE AMOUNT TO THE DIRECTOR OF BUDGET AND MANAGEMENT. THE DIRECTOR SHALL PROVIDE FOR PAYMENT OF THE EXCESS FROM THE GENERAL REVENUE FUND TO THE COUNTY TREASURY, AND THE COUNTY AUDITOR SHALL DRAW WARRANTS ON THE COUNTY TREASURER IN FAVOR OF THE APPROPRIATE FEE FUNDS OR OFFICERS.

Sec. 5731.48. (A) If a decedent dies on or after July 1, 1989, AND BEFORE JANUARY 1, 2001, sixty-four per cent 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 shall be credited as follows PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS SECTION:

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

(B)(2) 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)(3) 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 THE REMAINDER OF THE TAXES LEVIED AND PAID SHALL BE FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS CHARGED UNDER SECTION 5731.47 of the Revised Code.

(B) IF A DECEDENT DIES ON OR AFTER JANUARY 1, 2001, ALL OF THE TAXES LEVIED AND PAID UNDER THIS CHAPTER ON THE PART OF THE TAXABLE ESTATE THAT IS NOT IN EXCESS OF THE APPLICABLE EXCLUSION AMOUNT PRESCRIBED IN SECTION 2010 OF THE INTERNAL REVENUE CODE, 26 U.S.C.A. 2010, FOR THE YEAR IN WHICH THE DECEDENT DIES SHALL BE FOR THE USE OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE TAX ORIGINATES AND CREDITED AS PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS SECTION; OF ANY TAXES LEVIED AND PAID ON THE PART OF THE TAXABLE ESTATE IN EXCESS OF THE APPLICABLE EXCLUSION AMOUNT, SIXTY-FOUR PER CENT SHALL BE FOR THE USE OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE TAX ORIGINATES AND CREDITED AS PROVIDED IN DIVISION (A)(1), (2), OR (3) OF THIS SECTION, AND THE REMAINDER SHALL BE FOR THE USE OF THE STATE AND SHALL BE CREDITED TO THE GENERAL REVENUE FUND AFTER ANY DEDUCTION FOR FEES AND COSTS CHARGED UNDER SECTION 5731.47 of the Revised Code.

(C) IF 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.

(D) 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 Tax Commissioner, not later than July 31, 2000, shall certify that amount to the Director of Budget and Management. Notwithstanding division (B)(1) of section 131.44 of the Revised Code, the Director shall subtract the amount so certified from the amount of the fiscal year 2000 surplus revenue that otherwise would be transferred to the Income Tax Reduction Fund under division (B)(1)(b) of that section.