Bill Text: OH SB16 | 2011-2012 | 129th General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-01 - To Ways & Means & Economic Development [SB16 Detail]
Download: Ohio-2011-SB16-Introduced.html
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Senator Wilson
| To amend section 5731.15 of the Revised Code to | 1 |
| exempt from the gross estate the value of real | 2 |
| property subject to agricultural or conservation | 3 |
| easements for the purpose of calculating a | 4 |
| decedent's estate tax liability. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That section 5731.15 of the Revised Code be | 6 |
| amended to read as follows: | 7 |
| Sec. 5731.15. For purposes of the tax levied by section | 8 |
| 5731.02 of the Revised Code, the value of the taxable estate shall | 9 |
| be determined by deducting from the value of the gross estate: | 10 |
| (A) If the decedent dies on or after July 1, 1993 and is | 11 |
| survived by a spouse, a marital deduction which shall be allowed | 12 |
| in an amount equal to the value of any interest in property that | 13 |
| passes or has passed from the decedent to the surviving spouse, | 14 |
| but only to the extent the interest is included in the value of | 15 |
| the gross estate. For purposes of the marital deduction, an | 16 |
| interest in property shall be considered as passing or as having | 17 |
| passed from the decedent to the surviving spouse only if one or | 18 |
| more of the following apply: | 19 |
| (1) The interest was bequeathed or devised to the surviving | 20 |
| spouse in the will of the decedent; | 21 |
| (2) The interest was inherited by the surviving spouse | 22 |
| through intestate succession from the decedent; | 23 |
| (3) The interest is a dower interest of the surviving spouse, | 24 |
| or the interest is an estate of the surviving spouse that is | 25 |
| authorized by the Revised Code and that is in lieu of dower; | 26 |
| (4) The decedent transferred the interest to the surviving | 27 |
| spouse at any time; | 28 |
| (5) At the time of the death of the decedent, the interest | 29 |
| was held by the decedent and the surviving spouse, or by the | 30 |
| decedent, the surviving spouse, and one or more other persons, in | 31 |
| any form of joint ownership with a right of survivorship; | 32 |
| (6) The decedent, alone or in conjunction with any other | 33 |
| person, had a power to appoint the interest and the interest was | 34 |
| so appointed to the surviving spouse, or the surviving spouse | 35 |
| acquired the interest as a result of the release or the | 36 |
| nonexercise of the power. | 37 |
| (B)(1) In addition to the marital deduction provided by | 38 |
| division (A) of this section, if an election is made in accordance | 39 |
| with division (B)(2) of this section and the decedent dies on or | 40 |
| after July 1, 1993, a qualified terminable interest property | 41 |
| deduction. This deduction shall be allowed in an amount equal to | 42 |
| all or any specific portion of qualified terminable interest | 43 |
| property treated as separate property, but only to the extent that | 44 |
| the property is included in the value of the gross estate. | 45 |
| (2) An election to have property treated as qualified | 46 |
| terminable interest property for purposes of the deduction | 47 |
| provided by division (B)(1) of this section shall be made by the | 48 |
| person filing the estate tax return under this chapter, in | 49 |
| writing, on or before the date by which the return is required to | 50 |
| be filed, determined with regard to any extension of time granted | 51 |
| for the filing of the return. The election shall specify whether | 52 |
| all or only a specific portion of qualified terminable interest | 53 |
| property treated as separate property shall be taken into account | 54 |
| in determining the deduction. If an election as provided in this | 55 |
| division is made, the election is irrevocable. | 56 |
| (3) As used in divisions (B)(1) and (2) of this section, | 57 |
| "qualified terminable interest property" means property that | 58 |
| satisfies all of the following: | 59 |
| (a) It is included in the value of the gross estate; | 60 |
| (b) It passes from the decedent to the surviving spouse of | 61 |
| the decedent; | 62 |
| (c) It is property in which the surviving spouse of the | 63 |
| decedent has a qualifying interest for life. For purposes of this | 64 |
| division, the surviving spouse has a qualifying interest for life | 65 |
| if both of the following apply: | 66 |
| (i) The surviving spouse is entitled to all income from the | 67 |
| property, which income is payable annually or at more frequent | 68 |
| intervals. | 69 |
| (ii) No person has a power to appoint any part of the | 70 |
| property to any person other than the surviving spouse. This | 71 |
| division shall not apply to a power that is exercisable only at or | 72 |
| after the death of the surviving spouse. | 73 |
| (C) The pay and allowances determined by the United States to | 74 |
| be due to a member of the armed forces for active duty in Vietnam | 75 |
| service for the period between the date declared by the United | 76 |
|
States as the beginning of | 77 |
|
status to the date of | 78 |
| United States. As used in this division, "Vietnam service" means | 79 |
| military service within the Republic of Vietnam during the period | 80 |
| between February 28, 1961, to July 1, 1973, or military service in | 81 |
| southeast Asia for which hostile fire pay was awarded pursuant to | 82 |
| 37 U.S.C. 310, during the period February 28, 1961, to July 1, | 83 |
| 1973. | 84 |
| (D)(1) The value of the decedent's real property that, on the | 85 |
| date of the decedent's death, is any of the following: | 86 |
| (a) Subject to a conservation easement granted in perpetuity | 87 |
| to the department of natural resources, a park district created | 88 |
| under Chapter 1545. of the Revised Code, a township park district | 89 |
| created under section 511.18 of the Revised Code, a conservancy | 90 |
| district created under Chapter 6101. of the Revised Code, a soil | 91 |
| and water conservation district created under Chapter 1515. of the | 92 |
| Revised Code, a county, a township, a municipal corporation, the | 93 |
| federal government or an agency or instrumentality thereof, or a | 94 |
| charitable organization that is authorized to hold conservation | 95 |
| easements by division (B) of section 5301.69 of the Revised Code; | 96 |
| (b) Subject to an agricultural easement granted in perpetuity | 97 |
| to the director of agriculture, a municipal corporation, county, | 98 |
| township, soil and water conservation district, the federal | 99 |
| government or an agency or instrumentality thereof, or to a | 100 |
| charitable organization described in division (B) of section | 101 |
| 5301.69 of the Revised Code; | 102 |
| (c) Enrolled in an agricultural security area under Chapter | 103 |
| 931. of the Revised Code. | 104 |
| (2) As used in division (D) of this section, "conservation | 105 |
| easement" and "agricultural easement" have the same meanings as in | 106 |
| section 5301.67 of the Revised Code. | 107 |
| Section 2. That existing section 5731.15 of the Revised Code | 108 |
| is hereby repealed. | 109 |
| Section 3. The amendment by this act of section 5731.15 of | 110 |
| the Revised Code applies to the estates of decedents who die on or | 111 |
| after the effective date of this act. | 112 |
