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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	December 17, 2014 09:46 AM
From:	Representative Thomas P. Murt
To:	All House members
Subject:	Inheritance Tax Elimination for Children with Disabilities (Prior HB 655)

I will be reintroducing legislation to amend the Tax Reform Code to add and define “child with a disability” and to eliminate the inheritance tax that is applied when assets are transferred from a deceased parent to a disabled child. Under the current law when a deceased parent transfers property and assets to a disabled child, a 4.5% inheritance tax is applied. The legislation that I am proposing will reduce the 4.5% inheritance tax to ZERO percent upon the transfer of property or assets from a deceased parent, adoptive parent, or a stepparent to a disabled child. The Department of Revenue does not believe this proposed legislation violates the Pennsylvania Constitution’s Uniformity Clause. Article VIII, Section 2 (b) (iii) of Pennsylvania’s Constitution permits the General Assembly to establish disabled individuals as a class of persons determined to be in need of a tax exemption.

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