Estate Tax Report
Connecticut Department of Revenue Services
Connecticut Office of Policy and Management
February 1, 2008
Summary:
Connecticut had a net loss in migration from the period of 2002-2006. They sent out a survey in 2007 to practitioners in the legal, accounting, and estate planning fields. Their surveys (166 responses) reported that 52.6 percent of the clients of the practitioners had left the state primarily due to the Connecticut Estate tax, and 76.9 percent reported that their clients had changed domicile at least in part due to the Connecticut Estate Tax.
Connecticut was not alone in experiencing this trend. Comparing all states that had an estate tax to those that did not have an estate tax from the period of 2004-2007, the states without an estate tax experienced greater annual percentage growth as follows:
| States without estate taxes | States with estate taxes | |
| Employment | +2.17% | +1.07% |
| Personal Income | +6.07% | +5.05% |
| Real Gross State Product | +3.20% | +2.24% |
“Leaving Rhode Island” Policy Lessons from Rhode Island’s Exodus of People and Money
Ocean State Policy Research Institute
January 2011
Summary:
Rhode Island has the 3rd most punitive estate tax in the country. This contributes to the out-migration of people and wealth. In Rhode Island, the people who are leaving tend to be the wealthier people in the state. In 2004, when the US tax policy changed with regard to tax credits for state estate taxes, some states kept a state estate tax (such as Rhode Island), while other eliminated their state estate tax. After this point, the out-migration of Rhode Island accelerated. Rhode Island’s average income out-migration became much more pronounced in 2004, going from an average of $580,934,000 (1995 to 2003) to an average of $833,992,000 (2004 to 2007). This is a significant loss of income.
Moreover, while Rhode Island collected $341.3 million in estate taxes from 1995 to 2007, they lost $540 million in other taxes due to out-migration.
Ohio’s Estate Tax:
Ohio passed legislation which eliminates Ohio’s estate tax, effective January 1, 2013. This was given a delayed implementation date because the current budget in Ohio, which includes estate tax allocations to counties and cities, relied on continuing estate tax collections. In terms of Ohio’s reasoning for elimination of its estate tax, Sponsor Testimony made reference to the “Leaving Rhode Island” article, but made no reference to any Ohio studies conducted. This suggests that they relied on previously completed studies to make their determination. Outside commentary (after the repeal), also referred to the Connecticut Estate Tax Report.
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