PRINTER'S NO.  4072

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2639

Session of

2012

  

  

INTRODUCED BY BLOOM, AUMENT, BAKER, BARRAR, BEAR, BOBACK, BURNS, COX, CREIGHTON, CUTLER, DALEY, DENLINGER, ELLIS, EVERETT, FABRIZIO, FLECK, GABLER, GIBBONS, GILLESPIE, GRELL, GROVE, HARHART, HARKINS, HEFFLEY, HESS, HICKERNELL, HORNAMAN, KAUFFMAN, KORTZ, LONGIETTI, MATZIE, METCALFE, MILLARD, MILNE, MULLERY, MUNDY, OBERLANDER, O'NEILL, PETRARCA, PICKETT, PYLE, QUINN, READSHAW, ROCK, SAYLOR, CULVER, SIMMONS, STEPHENS, STERN, STEVENSON, TALLMAN AND TRUITT, SEPTEMBER 25, 2012

  

  

REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 25, 2012  

  

  

  

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 transfers not subject to

11

tax.

12

The General Assembly of the Commonwealth of Pennsylvania

13

hereby enacts as follows:

14

Section 1.  Section 2111 of the act of March 4, 1971 (P.L.6,

15

No.2), known as the Tax Reform Code of 1971, is amended by

16

adding a subsection to read:

17

Section 2111.  Transfers Not Subject to Tax.--* * *

18

(t)  The following shall apply:

19

(1)  A transfer of all business assets, including real estate

 


1

between members of the same family, provided that:

2

(i)  After the transfer, all assets, including real estate,

3

continue to be devoted to the same business for a period of five

4

years beyond the transferor's date of death. An asset under this

5

article which is no longer devoted to the same business within

6

five years beyond the transferor's date of death shall be

7

subject to inheritance tax due the Commonwealth under section

8

2107, in the amount that would have been paid or payable on the

9

basis of valuation authorized under section 2121 for nonexempt

10

transfers of property, plus interest accruing as of the

11

transferor's date of death, at the rate established in section

12

2143.

13

(ii)  A tax imposed under section 2107 shall be a lien in

14

favor of the Commonwealth upon the property no longer being

15

devoted to the same use, collectible in the manner provided for

16

by law for the collection of delinquent taxes, including the

17

personal obligation of the owner of the property at the time of

18

the change of use.

19

(iii)  Every owner of any asset exempt under this subsection

20

shall certify to the department on an annual basis that the

21

asset qualifies for this exemption and shall notify the

22

department within thirty days of any transaction or occurrence

23

causing any asset to fail to qualify for the exemption. Each

24

year the department shall inform all owners of their obligation

25

to provide an annual certification under this subparagraph. The

26

certification and notification shall be completed in the form

27

and manner as provided by the department.

28

(2)  Subclause (1) shall apply to the transfer of assets if

29

the business is owned wholly by members of the same family

30

before the transfer. For the purposes of this subsection,

- 2 -

 


1

business assets shall also include any asset leased to a

2

business owned wholly by members of the same family before the

3

transfer by a member of the same family.

4

Section 2.  This act shall take effect in 60 days.

- 3 -

 


See other bills
under the
same topic