Breaking News – Ohio Estate Tax Repealed!


Columbus, Ohio June 30, 2011


Citizens United to End Ohio’s Estate Tax Commends General Assembly Members and Gov. Kasich for Ending Ohio’s Estate Tax.

With Gov. John Kasich’s signature today on Ohio’s biennial 2012-2013 budget, he eliminates a projected $8 billion deficit and for the first time since 1893 will end – effective Jan. 1, 2013 – Ohio’s estate tax. The repeal marks success for the two year Citizens United initiative campaign and fulfills a campaign pledge made by Gov. Kasich and many General Assembly members.

With the nation’s lowest asset exemption of $338,333, more productive Ohioans are punished by our estate tax than by any other state. What’s more, the estate of an Ohioan is over 50 times more likely to be subject to our estate tax than by the federal estate tax.

Our estate tax is recognized by citizens and elected officials as a major reason that capital, businesses and jobs have fled the Buckeye State, which ranks near dead last in job creation among the 50 states over the past decade. Ending this harmful tax will help stop the exodus of businesses and jobs from the Buckeye State. Many of them have fled to Florida or one of the other 27 states without a death tax.

This exodus accelerated after the federal credit for state estate taxes ended in 2004, which had the result of greatly increasing the financial burden of state imposed estate taxes. Internal Revenue Service migration data show a remarkable 41% increase in the average adjusted gross income of Ohio households that moved to Florida in 2008 versus 2005. This increase is not explained by a change in the weather between Ohio and Florida, just as weather does not explain why cold temperature states without an estate tax such as South Dakota and New Hampshire have had a net inflow of people from other states.

A recent posting on the web site of the Ohio Society of CPAs sums it up well: “I have helped many of my clients relocate specifically to escape the Ohio estate tax….and this does not help Ohio in any way.”

Reform-minded Ohio legislators such as Rep. Cheryl Grossman (R-Grove City), Rep. Jay Hottinger (R-Newark), and Senator Kris Jordan (R-Powell) were encouraged in their efforts by the two-year volunteer grass roots campaign conducted by Citizens United to End Ohio’s Estate Tax, which presented the General Assembly in February with 85,000 signatures of Ohio voters who favored repeal.

What’s more, a coalition of ordinary citizens, business organizations such as National Federation of Independent Business–Ohio, farm groups, grass roots groups such as tea parties and Americans for Prosperity–Ohio, social issue groups such as the Ohio

Christian Alliance, and political groups all supported repeal. National organizations such as Americans for Tax Reform and the American Family Business Institute, among others, provided support as well. With this support and with a majority of Ohio legislators committed to increasing jobs and local revenues over the long haul, our estate tax will soon be extinguished.

Repeal drew criticism from a few local government officials. A portion of Ohio estate tax revenue goes to the locality where the decedent lived. Wealthy jurisdictions receive the lions-share, while poor jurisdictions receive little or nothing. According to Ohio Department of Taxation data, over 10% of all Ohio local jurisdictions received not one penny of estate tax revenue over the five year period from 2005 – 2009.

Ohio’s estate tax provides a meager 2% of the average local jurisdiction revenue—and no estate tax revenue goes to county governments or schools. This revenue will be more than replaced over the long term by increased job creation brought forth by ending the estate tax.

Many local officials support repeal. The city council of Sharonville passed this resolution in March by a 6-1 vote: “The Council hereby supports the elimination of the Ohio Estate Tax as a means of retaining the citizens of the State of Ohio.”

No other state attempts to fund township and municipality budgets with erratic and wildly fluctuating estate tax revenue.

Ohio’s state and local governments need tax revenue, but we don’t need a tax that destroys wealth and drives away the very business owners who create jobs and pay the majority of taxes.

Today, Ohio begins its journey back to a thriving economy. Repeal of the Estate Tax is a first step on that journey.

For information: contact Jack Boyle (440-552-2107,


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