MAY 15, 2007 - Currently, Ohio levies an estate tax on the transfer of an estate worth $338,333 or more to the descendent. For estates over $338,333 but under $500,000, the Ohio Estate Tax is $13,900 plus seven percent of the excess amount over $338,333. For estates over $500,000, the Ohio Estate Tax rate is $23,600 plus seven percent of the excess amount over $500,000 (Ohio Revised Code 5731.02). In Fiscal Year 2005, the Ohio Estate Tax produced total revenue of $304.6 million, eighty percent of which went to local townships and municipalities (Ohio Department of Taxation).

Two separate bills are currently being reviewed in the Ohio House of Representatives Ways and Means Committee. House Bill 3, sponsored by Representative Bob Latta (R-District 06), abolishes the statewide estate tax. Townships and municipalities that would like to continue the tax could levy a local estate tax upon voter approval. In addition, House Bill 3 raises the minimum taxable estate from $338,333 to $500,000.

House Bill 4, sponsored by Representative Larry Wolpert (R-District 23), makes the Ohio Estate Tax solely a local tax. (Currently, the state keeps twenty percent of the revenue generated.) The bill designates all the estate tax revenue to the local level. The legislation provides townships and municipalities with the opportunity to decide to opt-out of the Ohio Estate Tax and in essence make their community an “estate tax free zone” when surrounded by communities that still elect to collect the estate tax. A measure of the bill also allows citizens to repeal the Ohio Estate Tax in their community without the support of their township or municipality. The residents are required to circulate a citizen’s petition that would place the repeal of the local estate tax on the ballot. This measure of House Bill 4 has been met with considerable resistance from local municipalities. Similar to House Bill 3, House Bill 4 raises the minimum taxable estate from $338,333 to $366,250 and allows for the minimum taxable estate to adjust every year based on consumer inflation.

The Greater Akron Chamber is dedicated to keeping our members informed on legislation that affects business in the Greater Akron Region. For information about how to contact your elected officials on the Ohio Estate Tax or other issues of concern, please refer to the Greater Akron Chamber’s Legislative Action Center.