Assistant House Majority Whip Cheryl Grossman (R-Grove City) and State Representative Jay Hottinger (R-Newark) today announced their support of a provision in Substitute House Bill 153—the state budget bill—to eliminate the Ohio estate tax, also known as the “death tax.” If passed, it will take effect on January 1, 2013 to give local governments time to adjust to this change in state law. Grossman and Hottinger were the original sponsors of legislation—House Bill 3—during the current General Assembly that was aimed at abolishing the tax.

This change to the budget legislation, which was put in place through a larger package of amendments accepted by the House Finance Committee today, will allow small business owners, farmers and homeowners to rightfully pass on their assets to their heirs without fear of being taxed twice on their life’s savings, which will make Ohio more competitive for entrepreneurial growth and investment.

“The elimination of the estate tax is just one of the many ways we are looking to improve Ohio’s economic outlook through the state operating budget,” said Rep. Grossman. “This change will lead to a more competitive Ohio, and I think it is a very welcoming sign for those who are looking to do business and enjoy retirement within our state’s borders. It is unfortunate the number of great Ohioans who have left our state in the past because of this unfair tax.”

Ohio currently has the lowest estate tax exemption in the United States. Only $338,333 of the taxable estate is exempt from the estate tax, compared to an average exemption amount of approximately $1.7 million for other states that have an estate tax.

“I’m thrilled to finally be ending this unnecessary tax that takes direct aim at our state’s middle class,” said Rep. Hottinger. “The budget bill is not only about controlling our state spending, but it is about restoring fairness to hard-working Ohioans who want to live and work in a fair and competitive environment. Ending this tax will have a tremendous effect on job creation and chart a sustainable path forward in the state of Ohio.”

Substitute House Bill 153 will continue to receive testimony and debate within the House Finance and Appropriations Committee