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 |