Ohio estate tax

From Wikipedia, the free encyclopedia

Taxation in the United States
This article is part of a series on Taxation
Federal taxation
Authority · History Internal Revenue Service Court • Forms • Code • Revenue Taxpayer standing
Income tax · Payroll tax Alternative Minimum Tax Estate tax · Excise tax · Gift tax Corporate tax · Capital gains tax
State & local taxation
State income tax · State tax levels Sales tax · Use tax · Property tax  · Land value tax
Federal tax reform Automated payment transaction tax Competitive Tax Plan Efficient Taxation of Income Hall-Rabushka flat tax Real Property Use Tax Taxpayer Choice Act USA Tax · Value Added Tax FairTax · Flat tax
Tax protesting History America: Freedom to Fascism The Law that Never Was Cheek v. United States Notable tax protesters Irwin Schiff Richard Michael Simkanin Robert Clarkson · Tom Cryer Vivien Kellems Wayne C. Bentson Wesley Snipes
Tax protester arguments: Constitutional · 16th Amendment Statutory · Conspiracy
Taxation by country Australia • British Virgin Islands Canada • China • Colombia France • Germany • Hong Kong India • Indonesia • Ireland Netherlands • New Zealand Peru • Russia • Singapore Switzerland • Tanzania Thailand • United Kingdom United States • European Union v • d • e Tax rates around the world Tax revenue as % of GDP
view • talk • edit

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 "sponge tax", was eliminated.^{[citation needed]}

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.^{[citation needed]}

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.

Taxable Estate Bracket	Tax Rate
Not over $40,000	2% of taxable estate
Over $40,000 but not over $100,000	$800 + 3% of excess over $40,000
Over $100,000 but not over $200,000	$2600 + 4% of excess over $100,000
Over $200,000 but not over $300,000	$6600 + 5% of excess over $200,000
Over $300,000 but not over $500,000	$11600 + 6% of excess over $300,000
Over $500,000	$23600 + 7% of excess over $500,000

[edit] See also

• Estate tax in the United States

[edit] External links

• Ohio Department of Taxation
• [1]