THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HANNA, OCTOBER 17, 2012

REFERRED TO COMMITTEE ON FINANCE, OCTOBER 17, 2012  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in inheritance tax, further providing for

transfers not subject to tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2111(s) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, amended

July 2, 2012 (P.L.751, No.85), is amended to read:

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

(s)  A transfer of real estate devoted to the business of

agriculture between members of the same family, provided that

after the transfer the real estate continues to be devoted to

the business of agriculture for a period of seven years beyond

the transferor's date of death and the real estate derives a

yearly gross income of at least two thousand dollars ($2,000),

provided that:

(1)  Any tract of land under this article which is no longer

devoted to the business of agriculture within seven years beyond

the transferor's date of death shall be subject to inheritance

tax due the Commonwealth under section 2107, in the amount that

would have been paid or payable on the basis of valuation

authorized under section 2121 for nonexempt transfers of

property, plus interest thereon accruing as of the transferor's

date of death, at the rate established in section 2143.

(2)  Any tax imposed under section 2107 shall be a lien in

favor of the Commonwealth upon the property no longer being

devoted to agricultural use, collectible in the manner provided

for by law for the collection of delinquent real estate taxes,

as well as the personal obligation of the owner of the property

at the time of the change of use.

(3)  Every owner of real estate exempt under this subsection

shall certify to the department on an annual basis that the land

qualifies for this exemption and shall notify the department

within thirty days of any transaction or occurrence causing the

real estate to fail to qualify for the exemption. Each year the

department shall inform all owners of their obligation to

provide an annual certification under this subclause. This

certification and notification shall be completed in the form

and manner as provided by the department.

(4)  The requirement that the real estate derives a yearly

gross income of at least two thousand dollars ($2,000) shall not

apply to forest land.

* * *

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