On January 11, 2011, House Bill 3 was introduced before the Ohio House of Representatives. House Bill 3 proposes the repeal of the Ohio Estate Tax for all decedents dying in 2011. As it stands now, estates worth over $338,333 are subject to an estate tax of approximately 6-7%, depending on the size of the state.
One of the main arguments proposed by proponents of House Bill 3 is that it will help Ohio’s farmers and small business owners who, as things currently stand, would have their estates subjected to the Ohio Estate Tax upon their deaths. The lost revenue from a repeal of the Ohio Estate Tax would impact local governments and the state. Currently, local governments received approximately 80% of the proceeds of the estate tax and the state receives the remaining 20%.
While it has not passed yet, House Bill 3 may have a positive impact on thousands of families who would otherwise have been subjected to the Ohio Estate Tax. Changes in the law, especially changes in tax laws, are a common occurrence. Be sure that your estate plan is flexible in accommodating these changes by contacting the attorneys at Kohler & Smith Co., LPA.