In 2005, another inheritance-related tax, called the Ohio additional estate tax or "sponge tax", was eliminated.
Though the state enforces the tax (through its administrative officers in the counties) and receives the tax, it retains only 20% of the tax and passes the rest on to the townships or municipalities associated with the resident decedent or the resident decedent's real property. Therefore, though the tax has been considered a progressive tax on inherited Ohio fortunes, most of the revenue benefits have accrued to villages and cities with relatively higher per capita incomes and net worths and therefore the tax is administratively a regressive tax.
An attempt to end the Ohio estate tax was blocked in 2001 when state revenues began to drop and intense lobbying from a league of suburban municipalities lobbied for a continuation of the tax. In 2007, the Ohio estate tax was again proposed for amendment or repeal.
|Taxable Estate Bracket||Tax Rate|
|Not over $40,000||2% of taxable estate|
|Over $40,000 but not over $100,000||$800 + 3% of excess over $40,000|
|Over $100,000 but not over $200,000||$2600 + 4% of excess over $100,000|
|Over $200,000 but not over $300,000||$6600 + 5% of excess over $200,000|
|Over $300,000 but not over $500,000||$11600 + 6% of excess over $300,000|
|Over $500,000||$23600 + 7% of excess over $500,000|
Illinois estate tax planning in 2009 and beyond: for persons dying in 2009 and later, the Illinois estate tax is further decoupled from (but still tethered to) the federal estate tax. Estate plans should now provide the flexibility to deal with this dilemma. This article discusses the options and makes the case for an Illinois QTIP.(qualified terminable interest property trust)
Feb 01, 2009; [ILLUSTRATION OMITTED] With the "sunset" provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 (1)...
Estate Tax Legislation In 2009: Avoiding The Train Wreck.(Economic Growth and Tax Relief Reconciliation Act of 2001)
Jul 07, 2009; Estate Planning Magazine, July 2009 When Congress enacted the Economic Growth and Tax Relief Reconciliation Act of 20011 ("EGTRRA...