There are a few significant tax changes that are currently being considered by the Ohio Senate. These possible changes include the elimination of Ohio’s estate tax and a tax amnesty program.
There are currently 33 states that do not have an estate tax. Eliminating the estate tax would presumably make Ohio a more attractive retirement option for many Ohio residents. During a State Capital press conference, Rep. Cheryl Grossman noted, “The estate tax has caused jobs, businesses and people to leave Ohio for one of the 30 states without an estate/inheritance tax.” She also noted, “Estate tax money is never budgeted because we never knew when we would receive it.” In fiscal year 2010, approximately $286 million in estate taxes were collected from Ohioans.
Currently, estates valued in excess of $338,333 are taxed at rates starting at 6%. If legislation is passed by the Senate, it would eliminate the estate tax by the year 2013. The House has already passed its version of the 2011-2013 budget, which also eliminates the estate tax.
The Ohio Senate is also considering a tax amnesty program. This program would be administered by the Ohio Department of Taxation, and would run from January 1 through February 15, 2012. The amnesty program would encompass Ohio personal income tax, sales and use tax, and corporate franchise tax.
For further information, please contact Katie Myers.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.