PRINTER'S NO. 211
No. 191 Session of 1971
INTRODUCED BY MESSRS. FINEMAN, IRVIS, ENGLEHART, PRENDERGAST, BERKES, PIEVSKY, MRS. ANDERSON AND MRS. KELLY, FEBRUARY 2, 1971
REFERRED TO COMMITTEE ON WAYS AND MEANS, FEBRUARY 2, 1971
AN ACT 1 Amending the act of June 15, 1961 (P.L.373), entitled "An act 2 providing for the imposition of certain taxes upon the 3 transfer of property passing from a decedent who was a 4 resident of the Commonwealth at the time of his death or 5 presumed death and of property having its situs in the 6 Commonwealth of a decedent who was a nonresident of the 7 Commonwealth at the time of his death or presumed death; 8 imposing additional taxes to equal Federal Estate Tax 9 Credits; defining and taxing certain transfers made in 10 contemplation of death, or to take effect in possession or 11 enjoyment at or after death; defining as a transfer and 12 taxing the right of survivorship in certain property as to 13 which such right exists; defining and exempting from tax, 14 transfers to certain persons or for certain purposes or of 15 certain property; providing for the valuation of property and 16 interests in property, the transfer of which is subject to 17 tax; defining and allowing deductions from the value of 18 property, the transfer of which is subject to tax; providing 19 for the persons ultimately liable for taxes in the absence of 20 a direction by the decedent to the contrary; providing for 21 the reporting of transfers and collection of taxes; imposing 22 penalties upon banks or other financial institutions for 23 failure to give notice to the Department of Revenue of the 24 death of a party to a joint or trust deposit therein and upon 25 persons who fail to file tax returns and documents; providing 26 for the compromise of taxes in the case of alleged 27 nonresidents of the Commonwealth; making it unlawful for any 28 person to make a false return or report; providing for liens 29 upon real property, the transfer of which is subject to tax, 30 and release thereof; authorizing the Secretary of Revenue to 31 bring suits in other jurisdictions for the collection of 32 taxes, and authorizing officials of other jurisdictions to 33 bring suits in the Commonwealth for the collection of death
1 taxes imposed by their jurisdictions; providing for the
2 refund of taxes to which the Commonwealth is not rightfully
3 or equitably entitled; providing for appeals and protests
4 from the imposition of taxes; regulating the entry into safe
5 deposit boxes of a decedent by certain persons, and providing
6 penalties; dealing with the jurisdiction, powers and
7 procedure of the orphans' court, Secretary of Revenue,
8 Department of Revenue, Attorney General, and register of
9 wills in matters relating to taxes; and citing certain acts
10 for repeal," changing the time for renunciation of transfer,
11 termination of annuity or life estate, filing the return, tax
12 delinquency date, and payment date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Sections 406, 505, 703, 711, subsection (a) of
16 section 713 and subsection (a) of section 714, act of June 15,
17 1961 (P.L.373), known as the "Inheritance and Estate Tax Act of
18 1961," amended December 22, 1965 (P.L.1205), are amended to
19 read:
20 Section 406. Renunciation of Transfer.--When any person
21 entitled to a distributive share of an estate, whether under an
22 inter vivos trust, a will, or the intestate law, renounces his
23 right to receive the distributive share within three (3) months
24 after the grant of letters, or within [fifteen (15)] nine (9)
25 months after the death of the decedent, whichever first occurs,
26 receiving therefor no consideration, the tax shall be computed
27 as though the persons who benefit by such renunciation were
28 originally designated to be the distributees, conditioned upon
29 adjudication or decree of distribution expressly confirming
30 distribution to such distributees. Notice of the filing of the
31 account and of its call for audit or confirmation shall include
32 notice to the Department of Revenue. When an unconditional
33 vesting of a future interest does not occur at the decedent's
34 death, the renunciation specified herein of the future interest
35 may be made within three (3) months after the occurrence of the
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1 event or contingency which resolves the vesting of such interest 2 in possession and enjoyment. 3 Section 505. Annuity or Life Estate Terminated Within 4 [Fifteen (15)] Nine (9) Months of Decedent's Death.--If an 5 annuity or a life estate is terminated by the death of the 6 annuitant or life tenant or by the happening of a contingency 7 within [fifteen (15)] nine (9) months after the death of the 8 transferor, the value of the annuity or estate shall be the 9 value, at the date of the transferor's death, of the amount of 10 the annuity or income actually paid or payable to the annuitant 11 or life tenant during the period he was entitled to the annuity 12 or was in possession of the estate. If an appraisement of an 13 annuity or life estate has been filed before such termination, 14 the appraisement, and any assessment based thereon, shall be 15 revised, in accordance with this section, upon request of any 16 party in interest, including the Commonwealth and the personal 17 representative, insofar as such appriasement, and any assessment 18 based thereon, relates to the valuation of such terminated 19 annuity or life estate, without the necessity of such party in 20 interest following any procedure described in Article X. of this 21 act. 22 Section 703. Time for Filing Return.--The returns required 23 by section 701 shall be filed within [fifteen (15)] nine (9) 24 months after the death of the decedent. At any time prior to the 25 expiration of such [fifteen (15)] nine (9) month period, the 26 Secretary of Revenue, in his discretion, may grant an extension 27 of the time for filing of a return for an additional period of 28 six (6) months. 29 Section 711. Payment Date; In General.--Inheritance tax is 30 due at the date of the decedent's death and (except as provided 19710H0191B0211 - 3 -
1 in section 712) shall become delinquent at the expiration of 2 [fifteen (15)] nine (9) months after the decedent's death. 3 Section 713. Payment Date; Future Interest; [Fifteen (15)] 4 Nine (9) Months of Decedent's Death; Contingencies.-- 5 (a) Payment Within [Fifteen (15)] Nine (9) Months of 6 Decedents's Death. At any time within [fifteen (15)] nine (9) 7 months after the decedent's death, the personal representative 8 or any party in interest may elect, by a writing filed with the 9 register, to have the value of a future interest determined as 10 of the date of decedent's death and to pay the tax assessed 11 thereon. Such tax shall become delinquent at the expiration of 12 [fifteen (15)] nine (9) months after the decedent's death. If 13 the future interest is accelerated within [fifteen (15)] nine 14 (9) months of decedent's death because of the occurrence of an 15 event described in section 505, the value of the future interest 16 shall be determined by making adjustment for the value of any 17 prior interest causing such acceleration, computed as provided 18 in section 505. 19 * * * 20 Section 714. Payment Date; Future Interest; Payment After 21 [Fifteen (15)] Nine (9) Months from Decedent's Death; 22 Contingencies.-- 23 (a) Payment After [Fifteen (15)] Nine (9) Months from 24 Decedent's Death. At any time after [fifteen (15)] nine (9) 25 months from the decedent's death, and prior to the vesting of a 26 future interest in possession and enjoyment a fiduciary, or any 27 party in interest, may elect, by a writing filed with the 28 register, to have the value of a future interest determined as 29 of the date of the filing of such election and to pay the tax 30 assessed thereon. Such tax shall become delinquent at the 19710H0191B0211 - 4 -
1 expiration of three (3) months from the filing of the election. 2 * * * 3 Section 2. This act shall take effect immediately and shall 4 apply to: 5 (1) The estates of all decedents dying on or after the 6 effective date of this act; 7 (2) Inter vivos transfers made by decedents dying on or 8 after the effective date of this act regardless of the date of 9 the transfer. 10 Existing laws shall remain in full force and effect for the 11 estates of all decedents dying before the effective date of this 12 act. B1L56RLC/19710H0191B0211 - 5 -