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
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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.
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