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," in inheritance tax, further providing for
11transfers not subject to tax.

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

14Section 1. Section 2111(s) of the act of March 4, 1971
15(P.L.6, No.2), known as the Tax Reform Code of 1971, added July
162, 2012 (P.L.751, No.85), is amended to read:

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

18(s) A transfer of real estate devoted to the business of
19agriculture between members of the same family, provided that
20after the transfer the real estate continues to be devoted to
21the business of agriculture for a period of seven years beyond
22the transferor's date of death and the real estate derives a

1yearly gross income of at least two thousand dollars ($2,000),
2provided that:

3(1) Any tract of land under this article which is no longer
4devoted to the business of agriculture within seven years beyond
5the transferor's date of death shall be subject to inheritance
6tax due the Commonwealth under section 2107, in the amount that
7would have been paid or payable on the basis of valuation
8authorized under section 2121 for nonexempt transfers of
9property, plus interest thereon accruing as of the transferor's
10date of death, at the rate established in section 2143.

11(2) Any tax imposed under section 2107 shall be a lien in
12favor of the Commonwealth upon the property no longer being
13devoted to agricultural use, collectible in the manner provided
14for by law for the collection of delinquent real estate taxes,
15as well as the personal obligation of the owner of the property
16at the time of the change of use.

17(3) Every owner of real estate exempt under this subsection
18shall certify to the department on an annual basis that the land
19qualifies for this exemption and shall notify the department
20within thirty days of any transaction or occurrence causing the
21real estate to fail to qualify for the exemption. Each year the
22department shall inform all owners of their obligation to
23provide an annual certification under this subclause. This
24certification and notification shall be completed in the form
25and manner as provided by the department.

26(4) The requirement that the real estate derives a yearly
27gross income of at least two thousand dollars ($2,000) shall not
28apply to forest land.

29* * *

30Section 2. This act shall take effect in 60 days.