PRINTER'S NO. 2877
No. 2173 Session of 1989
INTRODUCED BY O'BRIEN, HERMAN, COWELL, STUBAN, NOYE, MAYERNIK,
ARGALL, E. Z. TAYLOR, J. L. WRIGHT, FOX, MORRIS, GODSHALL,
MERRY, FARGO, JOHNSON, CIVERA, PESCI, MICOZZIE, SAURMAN,
KENNEY, BILLOW, LAUGHLIN, CESSAR, BUNT, DONATUCCI, GEIST,
ADOLPH, BIRMELIN, J. TAYLOR, FLICK, MRKONIC AND McHALE,
DECEMBER 6, 1989
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 6, 1989
AN ACT
1 Amending Title 72 (Taxation and Fiscal Affairs) of the
2 Pennsylvania Consolidated Statutes, exempting from taxation
3 transfers to spouses, children, parents, grandparents and
4 lineal descendants.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 1711(m) and 1716(a) of Title 72 of the
8 Pennsylvania Consolidated Statutes are amended to read:
9 § 1711. Transfers not subject to tax.
10 * * *
11 (m) Husband and wife and other descendants.--Property owned
12 by husband and wife with right of survivorship is exempt from
13 inheritance tax. [If the ownership was created within the
14 meaning of section 1707(c)(3) the entire interest transferred
15 shall be subject to tax under section 1707(c)(3) as though a
16 part of the estate of the spouse who created the co-ownership.]
17 Transfers made to a spouse, child, father, mother, grandfather,
1 grandmother and lineal descendants are exempt from inheritance
2 tax.
3 § 1716. Inheritance tax.
4 (a) Rate of tax.--
5 (1) Inheritance tax shall not be imposed upon the
6 transfer of property passing to or for the use of any of the
7 following [shall be at the rate of 6%]:
8 (i) Grandfather, grandmother, father, mother,
9 husband, wife and lineal descendants.
10 (ii) Wife or widow and husband or widower of a
11 child.
12 (2) Inheritance tax upon the transfer of property
13 passing to or for the use of all persons other than those
14 designated in paragraph (1) shall be at the rate of 15%.
15 (3) When property passes to or for the use of a husband
16 and wife with right of survivorship, one of whom is exempt
17 from taxation or taxable at a rate lower than the other, the
18 exemption or lower rate of tax shall be applied to the entire
19 interest.
20 * * *
21 Section 2. This act shall apply to the estates of all
22 persons dying on or after January 1, 1990.
23 Section 3. This act shall take effect immediately.
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