|Posted:||December 17, 2012 10:48 AM|
|From:||Representative Stephen Bloom|
|To:||All House members|
|Subject:||“Mom & Pop Shop” Death Tax Elimination (Previous HB 2639)|
|Pennsylvania remains one of the few states to impose an inheritance or "death" tax on the heirs of its deceased citizens. The death tax inflicts an especially disruptive and destructive burden on family-owned businesses. The transfer of productive business assets at death often results in the sudden need to liquidate essential business resources (or sometimes the entire business) to raise the cash necessary to pay the tax bill, all at a time when the business and its employees are most vulnerable, in the aftermath of the death of a principal owner. Therefore, I will be introducing legislation to exempt from the inheritance tax the assets of family-owned Pennsylvania businesses being transferred to family members.
The Governor's Manufacturing Advisory Council recently published its recommendations in a document titled “Recommendations to Encourage Growth in Pennsylvania’s Manufacturing Sector.” One of the Recommendations in the document, specifically item number 10.1.3, is as follows “To aid in retention of family-owned manufacturing firms across times of succession, the commonwealth should reform the Inheritance Tax to allow for family-owned manufacturing firms to transfer business assets to other family members.”
The attached legislation, HB 2639 of last Session, is intended to help implement this important job saving and job creating recommendation.
Previous Cosponsors: 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, TRUITT, SONNEY, MURT and SWANGER
Introduced as HB48