Repeal the Ohio Estate Tax   OHIO ESTATE TAX ANALYSIS SHOWS UNEXPECTED PROBLEMS: FIRST, TAXES ARE REGRESSIVELY DISTRIBUTED TO MOST OHIO MUNICIPALITIES AND TOWNSHIPS, AND SECOND, OHIO’S RELATIVE TAX SHARE OF TOTAL ESTATE TAXES IS HIGHEST FOR MIDDLE CLASS “The Ohio Estate Tax benefits a few wealthy towns at the expense of their middle class and wealthy citizens while shortchanging most towns in urban and rural Ohio” Zanesville, Ohio (Feb. 10, 2006) – James Brodbelt Harris, CFA, and his firm Harris Investment and Property have released a new policy research report titled, The Ohio Estate Tax: Local Treatments for a Schizophrenic Law, revealing unexpected facts and making new analytical conclusions about Ohio’s “ghastly tax”. The author collected six years of data from the Ohio Department of Taxation (1998-2003), combining the data along with population statistics from the U.S. census (2000) to analyze the amount of estate taxes paid and the per capita distribution of estate tax receipts to municipalities and townships. The report makes several key findings that upend conventional expectations about the death tax, especially about who pays the tax and which towns get the bulk of the distributed estate tax receipts, in total and on a per capita basis. Whereas most Ohioans believe the Ohio estate tax is a progressive statewide tax paid only by the wealthy, the facts are that most estate taxes are paid by middle class estates at a single rate of 7%, and that 80% of total Ohio estate tax receipts are distributed regressively, with most of the proceeds going to the general revenue funds of the richest municipalities and townships in the state. Several observations or conclusions made in the report follow below. James Brodbelt Harris, CFA, a native of Ohio and a resident of Muskingum County in central Ohio, operates an investment firm, Harris Investment and Property, and analyzes stocks and property investments. A Chartered Financial Analyst (CFA) charterholder and a graduate of Dartmouth College (AB 1991), Harris periodically publishes financial research reports and was a co-author of the Corporate Governance Handbook (NYSSA, 2003). A relative of Governor Andrew L. Harris, the author participates in his family’s “Ohio Century Farm” and has authored several historical monographs relating to local history in addition to financial works. FINDINGS Ohio exemption amount is only $338,333 (at 6%) and above $500,000, the tax rate is 7% The Ohio estate tax is not a progressive tax since almost all taxpayers pay 7% Marginal combined estate tax rate (Ohio and U.S.) is 53% on estates above $2,000,000 Ohio’s share of total estate taxes is higher than Federal share for most Ohio taxpayers Ohio estate tax exceeds the federal estate tax at estates valued up to $2,294,102 Even estates valued at $3,000,000 pay 29% of combined taxes directly to Ohio Effective transfer tax rate is much higher on net amount actually transferred after tax Most farms aren’t exempt from estate tax due to flawed wording of farm provisions Veterans pay estate tax without exemption and likewise, homes are non-exempt Almost all estate tax receipts are regressively distributed, mostly to several rich towns Columbus, Cleveland, Dayton, Akron and Toledo and most rural areas are shortchanged Total of distributed estate tax receipts over six years was $1.48 billion, or $131 per capita Towns in Richest 12 Counties received 50% of tax distribution with 32% of population Richest 19 Cities received $747 per capita but poorest 221 cities received $112 per capita Richest cities include: Indian Hill, Beachwood, Pepper Pike, Oakwood, Shaker Heights Cincinnati received $344 per capita but Columbus, Cleveland and Dayton got $48 to $82 Richest 25 villages received $69 million, as much as Poorest 673 villages combined Richest 25 villages have just 44,065 residents (5%) vs. 829,539 in poorest villages (95%) Richest 25 villages received $1,571 per capita versus $84 in 673 poorest villages Richest villages include: Hunting Valley, Kirtland Hills, Waite Hill, Hills & Dales, Chagrin Falls, Bratenahl, Jacksonburg, Sugar Bush Knolls, Gates Mills Richest 25 townships received $835 per capita vs. $89 in poorest 1284 townships Richest townships include Elizabeth, Beavercreek, Chagrin Falls, Clinton, Washington Richest townships received 26% of tax distribution to townships with 4% of population Richest city (Indian Hill in Hamilton Co.) received $5,086 per capita Richest village (Hunting Valley in Cuyahoga Co.) received $33,052 per capita Richest township (Elizabeth in Miami Co.) received $22,900 per capita   Copyright, James Brodbelt Harris, 2/2006. The author gives permission in 2006 to media to excerpt, copy or publish Report or photograph at will and retain, if published in 2006, in electronic retrieval databases, if proper credit given to author. Permission is also available to weblog or private website publishers to excerpt report with proper credit, but reference to the larger published body of work should be made by link to author’s website. Author used public data published c. 2006 at http://tax.ohio.gov/divisions/tax_analysis/tax_data_series/estate/publications_tds_estate.stm by the Ohio Department of Taxation (Excel files for 1998-2003 tax years), and other data from the U.S. government (Census, 2000) while attempting to fix errors related to naming conventions and formatting and to match population with tax data. Author’s Excel file may be available upon request by email. No warranty of correctness is given. This report does not constitute legal advice or financial advice to anyone including Ohio taxpayers or authorities for municipalities and townships. If photograph or contact details above do not publish properly, then contact James Brodbelt Harris, CFA, Treasurer, Harris For Ohio, 1172 Muirwood Dr., Zanesville, OH 43701,(740) 408-2495 (media only), or email, HarrisForOhio@aol.com or visit www.HarrisForOhio.com  This report is being republished by permission of the author on the candidate's campaign website for local Ohio interest. The candidate approved of this communication and can be reached at the address above.