Friday, July 01, 2011

Ohio to Bid Adieu to Estate Tax


Ohio Governor John Kasich signed House Bill 153 (Ohio Budget Bill) yesterday, which, among other things, repeals the Ohio Estate Tax for decedents dying on or after January 1, 2013. On one hand, the repeal of the tax will be a major loss of revenue for local governments. On the other hand, it makes Ohio a more attractive state tax-wise. For many years, Ohio residents with homes in other states, like Florida, have changed their residences for more tax-friendly treatment. Currently, the applicable exclusion amount in Ohio is $338,333, meaning that a decedent's estate would have to file an estate tax return if the decedent died with over that amount. Last I checked, that was the smallest exemption amount of all the states in the United States.

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