PRINTER'S NO. 1377
No. 1170 Session of 1977
INTRODUCED BY KATZ, MAY 25, 1977
REFERRED TO COMMITTEE ON FINANCE, MAY 25, 1977
AN ACT 1 Amending the act of June 15, 1961 (P.L.373, No.207), entitled 2 "An act providing for the imposition of certain taxes upon 3 the 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 34 taxes imposed by their jurisdictions; providing for the 35 refund of taxes to which the Commonwealth is not rightfully
1 or equitably entitled; providing for appeals and protests 2 from the imposition of taxes; regulating the entry into safe 3 deposit boxes of a decedent by certain persons, and providing 4 penalties; dealing with the jurisdiction, powers and 5 procedure of the orphans' court, Secretary of Revenue, 6 Department of Revenue, Attorney General, and register of 7 wills in matters relating to taxes; and citing certain acts 8 for repeal," further providing for the taxation of certain 9 jointly held property. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Section 241, act of June 15, 1961 (P.L.373, 13 No.207), known as the "Inheritance and Estate Tax Act of 1961," 14 is amended to read: 15 Section 241. Joint Tenancy.--When any property is held in 16 the names of two or more persons, or is deposited in a financial 17 institution in the names of two or more persons, so that, upon 18 the death of one of them, the survivor or survivors have a right 19 to the immediate ownership or possession and enjoyment of the 20 whole property, the accrual of such right, upon the death of one 21 of them, shall be deemed a transfer subject to tax under this 22 act, of a fractional portion of such property to be determined 23 by dividing the value of the whole property by the number of 24 joint tenants in existence immediately preceding the death of 25 the deceased joint tenant. The taxation of only a fractional 26 portion of the property as herein provided shall not be denied 27 solely on the basis that the property, or evidence of the 28 ownership of such property, titled or registered in joint names 29 was kept in a safe deposit box or other secure place to which 30 joint tenants other than the decedent had no right of access. 31 This section shall not apply to property and interests in 32 property passing by right of survivorship to the survivor of 33 husband and wife. If the co-ownership was created in 34 contemplation of death, within the meaning of section 222 of 19770H1170B1377 - 2 -
1 this act, the entire interest so transferred shall be subject to 2 tax only under section 222, as though a part of the estate of 3 the person who created the co-ownership. 4 Section 2. This act shall take effect immediately and shall 5 be applicable to the property of decedents dying thereafter. E3L56CVV/19770H1170B1377 - 3 -