H0377B2849A04399       BIL:DM  11/21/07    #90             A04399
                        AMENDMENTS TO HOUSE BILL NO. 377
                                    Sponsor:  REPRESENTATIVE PERRY
                                           Printer's No. 2849

     1       Amend Title, page 1, line 11, by removing the period after
     2    "poverty" and inserting
     3               ; and phasing out inheritance and estate tax
     4               provisions.

     5       Amend Bill, page 2, by inserting between lines 26 and 27
     6       Section 2.  Section 2106 of the act, added August 4, 1991
     7    (P.L.97, No.22), is amended to read:
     8       Section 2106.  Imposition of Tax.--(a)  An inheritance tax
     9    for the use of the Commonwealth is imposed upon every transfer
    10    subject to tax under this article at the rates specified in
    11    section 2116.
    12       (b)  This section shall not apply to the estates of decedents
    13    dying on or after January 1, 2012.
    14       Section 3.  Section 2116(a) of the act, amended May 24, 2000
    15    (P.L.106, No.23), is amended to read:
    16       Section 2116.  Inheritance Tax.--(a)  (1)  Inheritance tax
    17    upon the transfer of property passing to or for the use of [any
    18    of the following shall be at the rate of four and one-half per
    19    cent:
    20       (i)  grandfather, grandmother, father, mother, except
    21    transfers under subclause (1.2), and lineal descendants; or
    22       (ii)  wife or widow and husband or widower of a child.] a
    23    grandfather, grandmother, father, mother, except transfers under
    24    subclause (1.2), lineal descendants, wife or widow and husband
    25    or widower of a child shall be at the rate provided in the
    26    following schedule:
    27       (i)  Four and one-half per cent for the estate of a decedent
    28    dying before or during calendar year 2009.
    29       (ii)  Two per cent for the estate of a decedent dying during
    30    calendar year 2010.
    31       (iii)  Zero per cent for the estate of a decedent dying
    32    during or after calendar year 2011.
    33       (1.1)  Inheritance tax upon the transfer of property passing
    34    to or for the use of a husband or wife shall be:
    35       (i)  At the rate of three per cent for estates of decedents
    36    dying on or after July 1, 1994, and before January 1, 1995.
    37       (ii)  At a rate of zero per cent for estates of decedents
    38    dying on or after January 1, 1995.
    39       (1.2)  Inheritance tax upon the transfer of property from a
    40    child twenty-one years of age or younger to or for the use of a


     1    natural parent, an adoptive parent or a stepparent of the child
     2    shall be at the rate of zero per cent.
     3       (1.3)  Inheritance tax upon the transfer of property passing
     4    to or for the use of a sibling shall be at the rate [of twelve
     5    per cent.] provided in the following schedule:
     6       (i)  Twelve per cent for the estate of a decedent dying
     7    before or during calendar year 2007.
     8       (ii)  Nine per cent for the estate of a decedent dying during
     9    calendar year 2008.
    10       (iii)  Six per cent for the estate of a decedent dying during
    11    calendar year 2009.
    12       (iv)  Four and one-half per cent for the estate of a decedent
    13    dying during calendar year 2010.
    14       (v)  Two per cent for the estate of a decedent dying during
    15    calendar year 2011.
    16       (vi)  Zero per cent for the estate of a decedent dying during
    17    or after calendar year 2012.
    18       (1.4)  Inheritance tax upon the transfer of property that is
    19    jointly held between a child and a natural parent, an adoptive
    20    parent or a stepparent of the child to the natural parent,
    21    adoptive parent or the stepparent shall be at the rate of zero
    22    per cent.
    23       (2)  Inheritance tax upon the transfer of property passing to
    24    or for the use of all persons other than those designated in
    25    subclause (1), (1.1), (1.2) or (1.3) or exempt under section
    26    2111(m) shall be at the rate [of fifteen per cent.] provided in
    27    the following schedule:
    28       (i)  Fifteen per cent for the estate of a decedent dying
    29    before or during calendar year 2007.
    30       (ii)  Ten per cent for the estate of a decedent dying during
    31    calendar year 2008.
    32       (iii)  Seven per cent for the estate of a decedent dying
    33    during calendar year 2009.
    34       (iv)  Four and one-half per cent for the estate of a decedent
    35    dying during calendar year 2010.
    36       (v)  Two per cent for the estate of a decedent dying during
    37    calendar year 2011.
    38       (vi)  Zero per cent for the estate of a decedent dying during
    39    or after calendar year 2012.
    40       (3)  When property passes to or for the use of a husband and
    41    wife with right of survivorship, one of whom is taxable at a
    42    rate lower than the other, the lower rate of tax shall be
    43    applied to the entire interest.
    44       * * *
    45       Section 4.  Section 2117 of the act is amended by adding a
    46    subsection to read:
    47       Section 2117.  Estate Tax.--* * *
    48       (d)  This section shall not apply to the estates of decedents
    49    dying on or after January 1, 2012.

    50       Amend Sec. 2, page 2, line 27, by striking out "2" and
    51    inserting
    52               5


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