An estate tax is a tax levied for the honor of dying. There were only 17 states that levied this tax. This January there will only be 16.
Effective Jan. 1, 2013, the Ohio Estate Tax is no longer. This tax was one of several reasons why Ohioans would exit the state and establish residency in a non-tax state. Gov. Kasich vowed to repeal this tax if elected and he has followed through with his promise. This tax was 7 percent of all of a deceased individual’s assets over $338,333. This was the lowest exemption amount in the nation.
It is anticipated that the repeal will entice those couples to return to Ohio. These same couples also moved to a state that has no income tax so it will be interesting to see if the repeal will be enough to have them return.
The reason for the delay in its starting date was to give villages, townships and cities time to correct future budgets reflecting the eliminations of the funds. These entities received eighty percent (80%) of the estate tax revenue. Actually, I am not sure how the municipalities and especially the townships will replace this revenue but there has been very little complaining and it appears that the repeal will stand.