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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY JOSEPHS, BROWNLEE, COHEN, D. COSTA, DONATUCCI, FRANKEL, FREEMAN, HARKINS, McGEEHAN, M. O'BRIEN, WAGNER AND YOUNGBLOOD, SEPTEMBER 13, 2011 |
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| REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 13, 2011 |
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| AN ACT |
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1 | Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An |
2 | act relating to tax reform and State taxation by codifying |
3 | and enumerating certain subjects of taxation and imposing |
4 | taxes thereon; providing procedures for the payment, |
5 | collection, administration and enforcement thereof; providing |
6 | for tax credits in certain cases; conferring powers and |
7 | imposing duties upon the Department of Revenue, certain |
8 | employers, fiduciaries, individuals, persons, corporations |
9 | and other entities; prescribing crimes, offenses and |
10 | penalties," in inheritance tax, further providing for |
11 | definitions and for rate of tax. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. Section 2102 of the act of March 4, 1971 (P.L.6, |
15 | No.2), known as the Tax Reform Code of 1971, is amended by |
16 | adding a definition to read: |
17 | Section 2102. Definitions.--The following words, terms and |
18 | phrases, when used in this article, shall have the meanings |
19 | ascribed to them in this section, except where the context |
20 | clearly indicates a different meaning: |
21 | * * * |
22 | "Domestic partnership." A relationship between two |
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1 | individuals who: |
2 | (1) are at least 18 years of age; |
3 | (2) are not related to each other by blood or marriage |
4 | within four degrees of consanguinity; |
5 | (3) are not married or in a civil union or domestic |
6 | partnership with another individual; and |
7 | (4) agree to be in a relationship of mutual interdependence |
8 | in which each individual contributes to the maintenance and |
9 | support of the other individual and the relationship, even if |
10 | both individuals are not required to contribute equally to the |
11 | relationship. |
12 | * * * |
13 | Section 2. Section 2116(a) of the act, amended May 24, 2000 |
14 | (P.L.106, No.23), is amended to read: |
15 | Section 2116. Inheritance Tax.--(a) (1) Inheritance tax |
16 | upon the transfer of property passing to or for the use of any |
17 | of the following shall be at the rate of four and one-half per |
18 | cent: |
19 | (i) grandfather, grandmother, father, mother, except |
20 | transfers under subclause (1.2), and lineal descendants; or |
21 | (ii) wife or widow and husband or widower of a child. |
22 | (1.1) Inheritance tax upon the transfer of property passing |
23 | to or for the use of a husband or wife shall be: |
24 | (i) At the rate of three per cent for estates of decedents |
25 | dying on or after July 1, 1994, and before January 1, 1995. |
26 | (ii) At a rate of zero per cent for estates of decedents |
27 | dying on or after January 1, 1995. |
28 | (1.2) Inheritance tax upon the transfer of property from a |
29 | child twenty-one years of age or younger to or for the use of a |
30 | natural parent, an adoptive parent or a stepparent of the child |
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1 | shall be at the rate of zero per cent. |
2 | (1.3) Inheritance tax upon the transfer of property passing |
3 | to or for the use of a sibling shall be at the rate of twelve |
4 | per cent. |
5 | (1.4) Inheritance tax upon the transfer of property passing |
6 | to or for the use of an individual in a domestic partnership |
7 | shall be at the rate of zero per cent for estates of decedents |
8 | dying on or after January 1, 2012. The department may require an |
9 | individual who asserts a domestic partnership under this |
10 | subclause to provide: |
11 | (i) An affidavit signed under penalty of perjury by two |
12 | individuals stating that they have established a domestic |
13 | partnership. |
14 | (ii) Proof of any two of the following documents: |
15 | (A) Joint liability of the individuals for a mortgage, lease |
16 | or loan. |
17 | (B) The designation of one of the individuals as the primary |
18 | beneficiary under a life insurance policy on the life of the |
19 | other individual or under a retirement plan of the other |
20 | individual. |
21 | (C) The designation of one of the individuals as the primary |
22 | beneficiary of the will of the other individual. |
23 | (D) A durable power of attorney for health care or financial |
24 | management granted by one of the individuals to the other |
25 | individual. |
26 | (E) Joint ownership or lease by the individuals of a motor |
27 | vehicle. |
28 | (F) A joint checking account, joint investments or a joint |
29 | credit account. |
30 | (G) A joint renter's or homeowner's insurance policy. |
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1 | (H) Coverage on a health insurance policy. |
2 | (I) Joint responsibility for child care, such as |
3 | guardianship or school documents. |
4 | (J) A relationship or cohabitation contract. |
5 | (2) Inheritance tax upon the transfer of property passing to |
6 | or for the use of all persons other than those designated in |
7 | subclause (1), (1.1), (1.2) [or], (1.3) or (1.4) or exempt under |
8 | section 2111(m) shall be at the rate of fifteen per cent. |
9 | (3) When property passes to or for the use of a husband and |
10 | wife with right of survivorship, one of whom is taxable at a |
11 | rate lower than the other, the lower rate of tax shall be |
12 | applied to the entire interest. |
13 | * * * |
14 | Section 3. This act shall take effect immediately. |
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