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
11definitions and for rate of tax.

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

14Section 1. Section 2102 of the act of March 4, 1971 (P.L.6,
15No.2), known as the Tax Reform Code of 1971, is amended by
16adding a definition to read:

17Section 2102. Definitions.--The following words, terms and
18phrases, when used in this article, shall have the meanings
19ascribed to them in this section, except where the context
20clearly indicates a different meaning:

21* * *

22"Domestic partnership." A relationship between two

1individuals who:

2(1) are at least 18 years of age;

3(2) are not related to each other by blood or marriage
4within four degrees of consanguinity;

5(3) are not married or in a civil union or domestic
6partnership with another individual; and

7(4) agree to be in a relationship of mutual interdependence
8in which each individual contributes to the maintenance and
9support of the other individual and the relationship, even if
10both individuals are not required to contribute equally to the
11relationship.

12* * *

13Section 2. Section 2116(a) of the act, amended May 24, 2000
14(P.L.106, No.23), is amended to read:

15Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
16upon the transfer of property passing to or for the use of any
17of the following shall be at the rate of four and one-half per
18cent:

19(i) grandfather, grandmother, father, mother, except
20transfers 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
23to or for the use of a husband or wife shall be:

24(i) At the rate of three per cent for estates of decedents
25dying on or after July 1, 1994, and before January 1, 1995.

26(ii) At a rate of zero per cent for estates of decedents
27dying on or after January 1, 1995.

28(1.2) Inheritance tax upon the transfer of property from a
29child twenty-one years of age or younger to or for the use of a
30natural parent, an adoptive parent or a stepparent of the child

1shall be at the rate of zero per cent.

2(1.3) Inheritance tax upon the transfer of property passing
3to or for the use of a sibling shall be at the rate of twelve
4per cent.

5(1.4) Inheritance tax upon the transfer of property passing
6to or for the use of an individual in a domestic partnership
7shall be at the rate of zero per cent for estates of decedents
8dying on or after January 1, 2013. The department may require an
9individual who asserts a domestic partnership under this
10subclause to provide:

11(i) An affidavit signed under penalty of perjury by two
12individuals stating that they have established a domestic
13partnership.

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

15(A) Joint liability of the individuals for a mortgage, lease
16or loan.

17(B) The designation of one of the individuals as the primary
18beneficiary under a life insurance policy on the life of the
19other individual or under a retirement plan of the other
20individual.

21(C) The designation of one of the individuals as the primary
22beneficiary of the will of the other individual.

23(D) A durable power of attorney for health care or financial
24management granted by one of the individuals to the other
25individual.

26(E) Joint ownership or lease by the individuals of a motor
27vehicle.

28(F) A joint checking account, joint investments or a joint
29credit account.

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

1(H) Coverage on a health insurance policy.

2(I) Joint responsibility for child care, such as
3guardianship or school documents.

4(J) A relationship or cohabitation contract.

5(2) Inheritance tax upon the transfer of property passing to
6or for the use of all persons other than those designated in
7subclause (1), (1.1), (1.2) [or], (1.3) or (1.4) or exempt under
8section 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
10wife with right of survivorship, one of whom is taxable at a
11rate lower than the other, the lower rate of tax shall be
12applied to the entire interest.

13* * *

14Section 3. This act shall take effect immediately.