In Ohio and Indiana, new laws end estate and inheritance taxes
Supporters of killing off so-called “death taxes” have had two notable legislative successes in the Midwest over the past two years — passage of a bill in 2011 to end the estate tax in Ohio, and Indiana’s decision in 2012 to phase out the inheritance tax. Indiana and Ohio are two of the six Midwestern states that levy either an inheritance tax or an estate tax.
According to The Tax Foundation, Indiana, Iowa and Nebraska have an inheritance tax — a tax imposed on beneficiaries of an estate. Illinois, Minnesota and Ohio impose a tax on the estate of a deceased individual.
Ohio’s estate tax will be repealed in 2013. Indiana’s SB 293, signed into law in March, calls for elimination of the inheritance tax by 2022. The measure also immediately raises the amount of money exempt from the tax, from $100,000 per beneficiary to $250,000, the Evansville Courier & Press reports. A fiscal analysis of SB 293 estimates that it will cost Indiana up to $16 million in revenue in fiscal year 2013. That amount gradually increases in ensuing fiscal years, reaching $165 million in FY 2024.