Bill Text: OH HB3 | 2011-2012 | 129th General Assembly | Comm Sub

Ohio House Bill 3 (Prior Session Legislation)

Bill Title: To repeal the estate tax for the estates of individuals dying on or after January 1, 2013.

Sponsorship: Partisan Bill (Republican 28-1)

Status: (Introduced - Dead) 2011-02-17 - Committee Report - S [HB3 Detail]

Download: Ohio-2011-HB3-Comm_Sub.html

As Reported by the House Ways and Means Committee

129th General Assembly

Regular Session

2011-2012

Sub. H. B. No. 3

Representatives Grossman, Hottinger

Cosponsors: Representatives Adams, J., Martin, McClain, Boose, Huffman, Maag, Brenner, Thompson, Hayes, Okey, Slaby, Newbold, Ruhl, Hite, Sears, Derickson, Dovilla, Gonzales, Blair, Kozlowski, Uecker, Henne, Stautberg, Combs, Roegner, Peterson, Amstutz

A BILL

To amend sections 5731.02, 5731.19, and 5731.21 of

the Revised Code to repeal the estate tax for the

estates of individuals dying on or after January

1, 2013.

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

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
July 1, 1968, and before January 1, 2013, who, at the time of ~~his~~	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
resident of this state with all ~~his~~the decedent's property	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
decedent had died a resident of this state with all ~~his~~the	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;

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

(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