Ohio's Two-Year Budget Contains A Number of Important Tax Provisions
Ohio’s two-year budget for fiscal years 2012 and 2013 contains a number of important Ohio tax benefits. The budget contains no tax increases or major new revenue raisers.
Eventual Death of the Ohio Estate Tax
The Ohio estate tax will be repealed for estates of individuals dying on or after January 1, 2013. Until that time, Ohio will continue to impose a graduated estate tax on estates valued at more than $338,333, which is the lowest value threshold for estate taxes in the nation. Once the estate tax is repealed, Ohio will join the majority of other states that do not have an estate tax.
Ohio Tax Amnesty Programs
A brief tax amnesty program will be offered for most taxes administered by the Ohio Department of Taxation from May 1 to June 15, 2012. Under the amnesty program, taxpayers with certain unpaid and unreported Ohio taxes — including personal income tax, corporate franchise tax, commercial activity tax, vendor’s sales tax, dealers in intangibles tax, natural gas company excise tax, motor fuel tax, cigarette tax, school district income tax, and estate tax—will generally be able to pay back taxes and one-half of the interest owed and avoid the other half of interest and penalties. This amnesty applies only to such taxes that were due, unpaid, and unreported as of May 1, 2011 and does not apply to taxpayers who have received tax bills, tax assessments, are under audit, or have been notified of selection for audit. Other benefits of participating in the amnesty program include avoiding criminal penalties. The taxpayer must make the required payments within the May 1, 2012 to June 15, 2012 amnesty period in order to qualify for the benefits of the tax amnesty program. Details regarding other timing requirements, admission into the program, and tax return filing obligations have yet to be released.
Read the full law alert here: Ohio’s Two-Year Budget Contains A Number of Important Tax Provisions