|Posted:||December 5, 2014 10:00 AM|
|From:||Senator Michele Brooks|
|To:||All Senate members|
|Subject:||Inheritance Tax Phase-Out|
|In the near future, I plan on reintroducing two pieces of legislation that I sponsored last legislative session in the House that will slowly phase-out the burdensome inheritance tax on transfers of assets between immediate family members.
Currently, Pennsylvania is only one of six states that still imposes an inheritance tax. The other five are: Iowa, Kentucky, Maryland, Nebraska and New Jersey.
I have long believed that the inheritance tax amounts to double taxation upon the death of a loved one and I am committed to eliminating this burdensome tax on families. While I would prefer to eliminate this tax immediately, I realize that this is a loss to the General Fund and, therefore, must be done over a period of time.
Introduced as SB432
|Description:||My first bill eliminates the 4.5 percent lineal inheritance tax rate over a ten year period of time ending in Fiscal Year 2025-26. Lineal heirs are defined as a grandparent, parent, child or child’s spouse. A child is considered a natural child, adopted child or step-child. This proposal will be similar to House Bill 2231.
Introduced as SB433
|Description:||My second bill will eliminate the 12 percent sibling inheritance tax rate over an eight year period of time ending in Fiscal Year 2023-24. This measure will be similar to House Bill 2232.