1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," further providing for transfers not subject to
11tax.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 2111 of the act of March 4, 1971 (P.L.6,
15No.2), known as the Tax Reform Code of 1971, is amended by
16adding a subsection to read:

17Section 2111.  Transfers Not Subject to Tax.--* * *

18(t)  The following shall apply:

1(1)  A transfer of all business assets, including real estate
2between members of the same family, provided that:

3(i)  After the transfer, all assets, including real estate, 
4continue to be devoted to the same business for a period of five 
5years beyond the transferor's date of death. An asset under this 
6article which is no longer devoted to the same business within 
7five years beyond the transferor's date of death shall be 
8subject to inheritance tax due the Commonwealth under section 
92107, in the amount that would have been paid or payable on the 
10basis of valuation authorized under section 2121 for nonexempt 
11transfers of property, plus interest accruing as of the 
12transferor's date of death, at the rate established in section 
132143.

14(ii)  A tax imposed under section 2107 shall be a lien in
15favor of the Commonwealth upon the property no longer being
16devoted to the same use, collectible in the manner provided for
17by law for the collection of delinquent taxes, including the
18personal obligation of the owner of the property at the time of
19the change of use.

20(iii)  Every owner of any asset exempt under this subsection
21shall certify to the department on an annual basis that the
22asset qualifies for this exemption and shall notify the
23department within thirty days of any transaction or occurrence
24causing any asset to fail to qualify for the exemption. Each
25year the department shall inform all owners of their obligation
26to provide an annual certification under this subparagraph. The
27certification and notification shall be completed in the form
28and manner as provided by the department.

29(2)  Subclause (1) shall apply to the transfer of assets if
30the business is owned wholly by members of the same family

1before the transfer. For the purposes of this subsection,
2business assets shall also include any asset leased to a
3business owned wholly by members of the same family before the
4transfer by a member of the same family.

5Section 2.  The addition of section 2111(t) of the act shall
6apply to the estates of decedents dying after June 30, 2013.

7Section 3.  This act shall take effect in 60 days.