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S. B. No. 16 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend section 5731.15 of the Revised Code to
exempt from the gross estate the value of real
property subject to agricultural or conservation
easements for the purpose of calculating a
decedent's estate tax liability.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5731.15 of the Revised Code be
amended to read as follows:
Sec. 5731.15. For purposes of the tax levied by section
5731.02 of the Revised Code, the value of the taxable estate shall
be determined by deducting from the value of the gross estate:
(A) If the decedent dies on or after July 1, 1993 and is
survived by a spouse, a marital deduction which shall be allowed
in an amount equal to the value of any interest in property that
passes or has passed from the decedent to the surviving spouse,
but only to the extent the interest is included in the value of
the gross estate. For purposes of the marital deduction, an
interest in property shall be considered as passing or as having
passed from the decedent to the surviving spouse only if one or
more of the following apply:
(1) The interest was bequeathed or devised to the surviving
spouse in the will of the decedent;
(2) The interest was inherited by the surviving spouse
through intestate succession from the decedent;
(3) The interest is a dower interest of the surviving spouse,
or the interest is an estate of the surviving spouse that is
authorized by the Revised Code and that is in lieu of dower;
(4) The decedent transferred the interest to the surviving
spouse at any time;
(5) At the time of the death of the decedent, the interest
was held by the decedent and the surviving spouse, or by the
decedent, the surviving spouse, and one or more other persons, in
any form of joint ownership with a right of survivorship;
(6) The decedent, alone or in conjunction with any other
person, had a power to appoint the interest and the interest was
so appointed to the surviving spouse, or the surviving spouse
acquired the interest as a result of the release or the
nonexercise of the power.
(B)(1) In addition to the marital deduction provided by
division (A) of this section, if an election is made in accordance
with division (B)(2) of this section and the decedent dies on or
after July 1, 1993, a qualified terminable interest property
deduction. This deduction shall be allowed in an amount equal to
all or any specific portion of qualified terminable interest
property treated as separate property, but only to the extent that
the property is included in the value of the gross estate.
(2) An election to have property treated as qualified
terminable interest property for purposes of the deduction
provided by division (B)(1) of this section shall be made by the
person filing the estate tax return under this chapter, in
writing, on or before the date by which the return is required to
be filed, determined with regard to any extension of time granted
for the filing of the return. The election shall specify whether
all or only a specific portion of qualified terminable interest
property treated as separate property shall be taken into account
in determining the deduction. If an election as provided in this
division is made, the election is irrevocable.
(3) As used in divisions (B)(1) and (2) of this section,
"qualified terminable interest property" means property that
satisfies all of the following:
(a) It is included in the value of the gross estate;
(b) It passes from the decedent to the surviving spouse of
the decedent;
(c) It is property in which the surviving spouse of the
decedent has a qualifying interest for life. For purposes of this
division, the surviving spouse has a qualifying interest for life
if both of the following apply:
(i) The surviving spouse is entitled to all income from the
property, which income is payable annually or at more frequent
intervals.
(ii) No person has a power to appoint any part of the
property to any person other than the surviving spouse. This
division shall not apply to a power that is exercisable only at or
after the death of the surviving spouse.
(C) The pay and allowances determined by the United States to
be due to a member of the armed forces for active duty in Vietnam
service for the period between the date declared by the United
States as the beginning of his the member's missing in action
status to the date of his the member's death as determined by the
United States. As used in this division, "Vietnam service" means
military service within the Republic of Vietnam during the period
between February 28, 1961, to July 1, 1973, or military service in
southeast Asia for which hostile fire pay was awarded pursuant to
37 U.S.C. 310, during the period February 28, 1961, to July 1,
1973.
(D)(1) The value of the decedent's real property that, on the
date of the decedent's death, is any of the following:
(a) Subject to a conservation easement granted in perpetuity
to the department of natural resources, a park district created
under Chapter 1545. of the Revised Code, a township park district
created under section 511.18 of the Revised Code, a conservancy
district created under Chapter 6101. of the Revised Code, a soil
and water conservation district created under Chapter 1515. of the
Revised Code, a county, a township, a municipal corporation, the
federal government or an agency or instrumentality thereof, or a
charitable organization that is authorized to hold conservation
easements by division (B) of section 5301.69 of the Revised Code;
(b) Subject to an agricultural easement granted in perpetuity
to the director of agriculture, a municipal corporation, county,
township, soil and water conservation district, the federal
government or an agency or instrumentality thereof, or to a
charitable organization described in division (B) of section
5301.69 of the Revised Code;
(c) Enrolled in an agricultural security area under Chapter
931. of the Revised Code.
(2) As used in division (D) of this section, "conservation
easement" and "agricultural easement" have the same meanings as in
section 5301.67 of the Revised Code.
Section 2. That existing section 5731.15 of the Revised Code
is hereby repealed.
Section 3. The amendment by this act of section 5731.15 of
the Revised Code applies to the estates of decedents who die on or
after the effective date of this act.
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