PRINTER'S NO. 2787
No. 2203 Session of 1995
INTRODUCED BY GEIST, FARGO, STERN, FLEAGLE, PHILLIPS, HESS,
MERRY, FARMER, HENNESSEY, BELFANTI, LUCYK AND SATHER,
NOVEMBER 14, 1995
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 14, 1995
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for the rate of the inheritance
11 tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2116(a) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 June 16, 1994 (P.L.279, No.48) and June 30, 1995 (P.L.139,
17 No.21), is amended to read:
18 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
19 upon the transfer of property passing to or for the use of any
20 of the following shall be at the rate of six per cent:
21 (i) grandfather, grandmother, father, mother and lineal
22 descendants; or
1 (ii) wife or widow and husband or widower of a child.
2 (1.1) Inheritance tax upon the transfer of property passing
3 to or for the use of a husband or wife shall be:
4 (i) At the rate of three per cent for estates of decedents
5 dying on or after July 1, 1994, and before January 1, 1995.
6 (ii) At a rate of zero per cent for estates of decedents
7 dying on or after January 1, 1995.
8 (1.2) Notwithstanding any provision of this section, assets
9 passing from parent to child or child to parent shall be taxed
10 at the rate of three per cent. Assets passing between siblings
11 shall be taxed at the rate of ten per cent.
12 (2) Inheritance tax upon the transfer of property passing to
13 or for the use of all persons other than those designated in
14 subclause (1) or (1.1) or exempt under section 2111(m) shall be
15 at the rate of fifteen per cent.
16 (3) When property passes to or for the use of a husband and
17 wife with right of survivorship, one of whom is taxable at a
18 rate lower than the other, the lower rate of tax shall be
19 applied to the entire interest.
20 * * *
21 Section 2. This act shall apply to the estates of decedents
22 whose deaths occur on or after January 1, 1996.
23 Section 3. This act shall take effect immediately.
I14L72DGS/19950H2203B2787 - 2 -