PRINTER'S NO. 4526
No. 1 Session of 2006
INTRODUCED BY BENNINGHOFF, ALLEN, BAKER, BALDWIN, BARRAR, BEBKO- JONES, BEYER, BOYD, BUNT, CALTAGIRONE, CAPPELLI, CLYMER, CORNELL, CRAHALLA, CREIGHTON, DeLUCA, FAIRCHILD, FICHTER, GINGRICH, GODSHALL, GOODMAN, HANNA, HARPER, HARRIS, HERSHEY, HESS, HUTCHINSON, KAUFFMAN, KOTIK, LEH, MAJOR, MARSICO, MUSTIO, NAILOR, O'NEILL, PAYNE, PETRARCA, PICKETT, RAPP, RAYMOND, READSHAW, REICHLEY, RUBLEY, SCAVELLO, SIPTROTH, B. SMITH, SOLOBAY, SONNEY, STERN, R. STEVENSON, T. STEVENSON, E. Z. TAYLOR, TRUE, TURZAI, WILT, WOJNAROSKI, GEIST, DENLINGER AND METCALFE, AUGUST 16, 2006
REFERRED TO COMMITTEE ON FINANCE, AUGUST 16, 2006
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 imposition of 11 inheritance tax, for the rate of inheritance tax and for 12 returns. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 2106 of the act of March 4, 1971 (P.L.6, 16 No.2), known as the Tax Reform Code of 1971, added August 4, 17 1991 (P.L.97, No.22), is amended to read: 18 Section 2106. Imposition of Tax.--An inheritance tax for the 19 use of the Commonwealth is imposed upon every transfer subject
1 to tax under this article at the rates specified in section 2 2116. This section shall not apply to the estates of decedents 3 dying on or after January 1, 2009. 4 Section 2. Section 2116(a) of the act, amended May 24, 2000 5 (P.L.106, No.23) is amended to read: 6 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax 7 upon the transfer of property passing to or for the use of any 8 of the following shall be at the rate of four and one-half per 9 cent[:] for estates of decedents dying before January 1, 2005; 10 at the rate of three per cent for estates of decedents dying on 11 or after January 1, 2005, and before January 1, 2006; at the 12 rate of two per cent for estates of decedents dying on or after 13 January 1, 2006, and before January 1, 2007; at the rate of one 14 per cent for estates of decedents dying on or after January 1, 15 2007, and before January 1, 2008; at the rate of zero per cent 16 for the estates of decedents dying on or after January 1, 2008, 17 and before January 1, 2009: 18 (i) grandfather, grandmother, father, mother, except 19 transfers under subclause (1.2), and lineal descendants; or 20 (ii) wife or widow and husband or widower of a child. 21 (1.1) Inheritance tax upon the transfer of property passing 22 to or for the use of a husband or wife shall be: 23 (i) At the rate of three per cent for estates of decedents 24 dying on or after July 1, 1994, and before January 1, 1995. 25 (ii) At a rate of zero per cent for estates of decedents 26 dying on or after January 1, 1995. 27 (1.2) Inheritance tax upon the transfer of property from a 28 child twenty-one years of age or younger to or for the use of a 29 natural parent, an adoptive parent or a stepparent of the child 30 shall be at the rate of zero per cent. 20060H0001B4526 - 2 -
1 (1.3) Inheritance tax upon the transfer of property passing 2 to or for the use of a sibling shall be at the rate of twelve 3 per cent[.] for estates of decedents dying before January 1, 4 2005; at the rate of ten per cent for estates of decedents dying 5 on or after January 1, 2005, and before January 1, 2006; at the 6 rate of eight per cent for estates of decedents dying on or 7 after January 1, 2006, and before January 1, 2007; at the rate 8 of five per cent for estates of decedents dying on or after 9 January 1, 2007, and before January 1, 2008; and at the rate of 10 two per cent for estates of decedents dying on or after January 11 1, 2008, and before January 1, 2009. 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), (1.1), (1.2) or (1.3) or exempt under section 15 2111(m) shall be at the rate of fifteen per cent[.] for estates 16 of decedents dying before January 1, 2006; at the rate of twelve 17 per cent for estates of decedents dying on or after January 1, 18 2006, and before January 1, 2007, at the rate of eight per cent 19 for estates of decedents dying on or after January 1, 2007, and 20 before January 1, 2008; at the rate of four per cent for estates 21 of decedents dying on or after January 1, 2008, and before 22 January 1, 2009. 23 (3) When property passes to or for the use of a husband and 24 wife with right of survivorship, one of whom is taxable at a 25 rate lower than the other, the lower rate of tax shall be 26 applied to the entire interest. 27 * * * 28 Section 3. Section 2136 of the act is amended by adding a 29 subsection to read: 30 Section 2136. Returns.--* * * 20060H0001B4526 - 3 -
1 (g) This section shall not apply to the estates of decedents 2 dying on or after January 1, 2009, except as referenced by 3 section 2145. 4 Section 4. This act shall take effect immediately. F19L72MSP/20060H0001B4526 - 4 -