Ohio estate tax
Encyclopedia
The state of Ohio
imposes an estate tax on the transfer of assets from resident decedents (or on Ohio assets of nonresidents). The tax rates are shown in the table below but because of tax credits, the effective lower limit on taxable estates is currently $338,333. Ohio also allows a "marital deduction" equal to the net value of any asset passing to the surviving spouse.
In 2005, another inheritance-related tax, called the Ohio additional estate tax or "pick-up tax", was eliminated (see entry at "sponge tax
").
Though the state enforces the tax (through its administrative officers in the counties) and receives the tax, it retains only 20% of the tax and passes the rest on to the townships or municipalities associated with the resident decedent or the resident decedent's real property. Therefore, though the tax has been considered a progressive tax
on inherited Ohio fortunes, most of the revenue benefits have accrued to villages and cities with higher per capita incomes and net worths and therefore the tax is administratively a regressive tax
.
An attempt to end the Ohio estate tax was blocked in 2001 when state revenues began to drop and intense lobbying from a league of suburban municipalities lobbied for a continuation of the tax. In 2007, the Ohio estate tax was again proposed for amendment or repeal. In 2010 the Ohio Republican Party central committee unanimously approved a petition to repeal the Ohio estate tax. http://www.endohioestatetax.com/
For dates of death on or after January 1, 2002:
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
imposes an estate tax on the transfer of assets from resident decedents (or on Ohio assets of nonresidents). The tax rates are shown in the table below but because of tax credits, the effective lower limit on taxable estates is currently $338,333. Ohio also allows a "marital deduction" equal to the net value of any asset passing to the surviving spouse.
In 2005, another inheritance-related tax, called the Ohio additional estate tax or "pick-up tax", was eliminated (see entry at "sponge tax
Sponge tax
The sponge tax was a US state-level estate tax linked to the calculation of the federal estate tax. States with this tax collected the amount allowable as a tax credit to the federal estate tax if paid in state estate taxes...
").
Though the state enforces the tax (through its administrative officers in the counties) and receives the tax, it retains only 20% of the tax and passes the rest on to the townships or municipalities associated with the resident decedent or the resident decedent's real property. Therefore, though the tax has been considered a progressive tax
Progressive tax
A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate...
on inherited Ohio fortunes, most of the revenue benefits have accrued to villages and cities with higher per capita incomes and net worths and therefore the tax is administratively a regressive tax
Regressive tax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, where the average tax rate exceeds the...
.
An attempt to end the Ohio estate tax was blocked in 2001 when state revenues began to drop and intense lobbying from a league of suburban municipalities lobbied for a continuation of the tax. In 2007, the Ohio estate tax was again proposed for amendment or repeal. In 2010 the Ohio Republican Party central committee unanimously approved a petition to repeal the Ohio estate tax. http://www.endohioestatetax.com/
For dates of death on or after January 1, 2002:
| Taxable Estate Bracket | Tax Rate |
|---|---|
| Over $338,333 but not over $500,000 | $13,900 plus 6% of the excess over $338,333 |
| Over $500,000 | 23,600 plus 7% of the excess over $500,000 |