FOR IMMEDIATE RELEASE Friday, June 16, 2006 Contact: Jason Warner (614) 466-2994
Gibbs Introduces Measure to Eliminate
Ohio Death Tax
COLUMBUS: State Representative Bob Gibbs (R, Lakeville) introduced legislation on Thursday which calls, among other items, proposes to eliminate the Ohio estate tax, more commonly known as the Death Tax. In addition, the legislation, House Bill 616, would reduce the income tax rate on retirement income, investment income, and passive business income for individuals 65 years or age or older, as well as to reduce the income tax rate on capital gains of all individuals having capital gain income.
“This time last year, the legislature took a great step forward in the approval of comprehensive income and business tax reform. This legislation is another step forward towards the overall goal of improving our business climate, and making Ohio a welcoming place for individuals to live” Representative Gibbs said of the bill.
The changes to the state tax code would take effect at the start of the 2008 fiscal year, July 1, 2007. The death tax would no longer apply to anyone who passes away following that date. Income tax rates on retirement income, investment income, and passive business income for individuals 65 years or age or older, as well as the income tax rates on capital gains of all individuals having capital gain income would be reduced by fifty percent.
“These changes will make Ohio more competitive in retaining residency of seniors who divide there time between our own state and other more tax friendly states” Gibbs said. “In addition, these changes will encourage more Ohioans to invest in their future by reducing the tax penalties for investing” Gibbs continued.