PRINTER'S NO.  2346

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1828

Session of

2011

  

  

INTRODUCED BY JOSEPHS, BROWNLEE, COHEN, D. COSTA, DONATUCCI, FRANKEL, FREEMAN, HARKINS, McGEEHAN, M. O'BRIEN, WAGNER AND YOUNGBLOOD, SEPTEMBER 13, 2011

  

  

REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 13, 2011  

  

  

  

AN ACT

  

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

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act relating to tax reform and State taxation by codifying

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and enumerating certain subjects of taxation and imposing

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taxes thereon; providing procedures for the payment,

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collection, administration and enforcement thereof; providing

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for tax credits in certain cases; conferring powers and

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imposing duties upon the Department of Revenue, certain

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employers, fiduciaries, individuals, persons, corporations

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and other entities; prescribing crimes, offenses and

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penalties," in inheritance tax, further providing for

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definitions and for rate of tax.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 2102 of the act of March 4, 1971 (P.L.6,

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No.2), known as the Tax Reform Code of 1971, is amended by

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adding a definition to read:

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Section 2102.  Definitions.--The following words, terms and

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phrases, when used in this article, shall have the meanings

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ascribed to them in this section, except where the context

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clearly indicates a different meaning:

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* * *

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"Domestic partnership."  A relationship between two

 


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individuals who:

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(1)  are at least 18 years of age;

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(2)  are not related to each other by blood or marriage

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within four degrees of consanguinity;

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(3)  are not married or in a civil union or domestic

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partnership with another individual; and

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(4)  agree to be in a relationship of mutual interdependence

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in which each individual contributes to the maintenance and

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support of the other individual and the relationship, even if

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both individuals are not required to contribute equally to the

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relationship.

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* * *

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Section 2.  Section 2116(a) of the act, amended May 24, 2000

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(P.L.106, No.23), is amended to read:

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Section 2116.  Inheritance Tax.--(a)  (1)  Inheritance tax

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upon the transfer of property passing to or for the use of any

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of the following shall be at the rate of four and one-half per

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cent:

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(i)  grandfather, grandmother, father, mother, except

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transfers under subclause (1.2), and lineal descendants; or

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(ii)  wife or widow and husband or widower of a child.

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(1.1)  Inheritance tax upon the transfer of property passing

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to or for the use of a husband or wife shall be:

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(i)  At the rate of three per cent for estates of decedents

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dying on or after July 1, 1994, and before January 1, 1995.

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(ii)  At a rate of zero per cent for estates of decedents

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dying on or after January 1, 1995.

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(1.2)  Inheritance tax upon the transfer of property from a

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child twenty-one years of age or younger to or for the use of a

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natural parent, an adoptive parent or a stepparent of the child

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shall be at the rate of zero per cent.

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(1.3)  Inheritance tax upon the transfer of property passing

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to or for the use of a sibling shall be at the rate of twelve

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per cent.

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(1.4)  Inheritance tax upon the transfer of property passing

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to or for the use of an individual in a domestic partnership

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shall be at the rate of zero per cent for estates of decedents

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dying on or after January 1, 2012. The department may require an

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individual who asserts a domestic partnership under this

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subclause to provide:

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(i)  An affidavit signed under penalty of perjury by two

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individuals stating that they have established a domestic

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partnership.

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(ii)  Proof of any two of the following documents:

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(A)  Joint liability of the individuals for a mortgage, lease

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or loan.

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(B)  The designation of one of the individuals as the primary

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beneficiary under a life insurance policy on the life of the

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other individual or under a retirement plan of the other

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individual.

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(C)  The designation of one of the individuals as the primary

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beneficiary of the will of the other individual.

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(D)  A durable power of attorney for health care or financial

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management granted by one of the individuals to the other

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individual.

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(E)  Joint ownership or lease by the individuals of a motor

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vehicle.

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(F)  A joint checking account, joint investments or a joint

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credit account.

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(G)  A joint renter's or homeowner's insurance policy.

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(H)  Coverage on a health insurance policy.

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(I)  Joint responsibility for child care, such as

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guardianship or school documents.

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(J)  A relationship or cohabitation contract.

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(2)  Inheritance tax upon the transfer of property passing to

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or for the use of all persons other than those designated in

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subclause (1), (1.1), (1.2) [or], (1.3) or (1.4) or exempt under

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section 2111(m) shall be at the rate of fifteen per cent.

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(3)  When property passes to or for the use of a husband and

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wife with right of survivorship, one of whom is taxable at a

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rate lower than the other, the lower rate of tax shall be

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applied to the entire interest.

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* * *

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Section 3.  This act shall take effect immediately.

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