PRINTER'S NO. 857
No. 771 Session of 2001
INTRODUCED BY ORIE, FICHTER, READSHAW, THOMAS, T. STEVENSON,
M. BAKER, DAILEY, PRESTON, ARMSTRONG, STABACK, FLICK,
PETRARCA, L. I. COHEN, CAPPABIANCA, DeLUCA, CAWLEY, BELARDI,
FAIRCHILD, MELIO, FEESE, GRUITZA, EGOLF, KENNEY, SCRIMENTI,
LAUGHLIN, METCALFE, SOLOBAY, SURRA, YOUNGBLOOD, STEIL, PIPPY,
ROBERTS, WOJNAROSKI, FORCIER, BROWNE, SCHULER, B. SMITH,
ADOLPH, GABIG, DALLY, McCALL, SAYLOR, BELFANTI, COSTA,
E. Z. TAYLOR, GRUCELA, WILT, PISTELLA, C. WILLIAMS, SHANER,
SAINATO, HORSEY, GEIST AND CIVERA, FEBRUARY 14, 2001
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 14, 2001
AN ACT
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," further providing for inheritance tax rates.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 2116(a) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
15 24, 2000 (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
1 cent for estates of decedents dying before January 1, 2001; at
2 the rate of two and one-half per cent for estates of decedents
3 dying on or after January 1, 2001, and before January 1, 2002;
4 and at the rate of zero per cent for estates of decedents dying
5 on or after January 1, 2002:
6 (i) grandfather, grandmother, father, mother, except
7 transfers under subclause (1.2), and lineal descendants; or
8 (ii) wife or widow and husband or widower of a child.
9 (1.1) Inheritance tax upon the transfer of property passing
10 to or for the use of a husband or wife shall be:
11 (i) At the rate of three per cent for estates of decedents
12 dying on or after July 1, 1994, and before January 1, 1995.
13 (ii) At a rate of zero per cent for estates of decedents
14 dying on or after January 1, 1995.
15 (1.2) Inheritance tax upon the transfer of property from a
16 child twenty-one years of age or younger to or for the use of a
17 natural parent, an adoptive parent or a stepparent of the child
18 shall be at the rate of zero per cent.
19 (1.3) Inheritance tax upon the transfer of property passing
20 to or for the use of a sibling shall be at the rate of twelve
21 per cent for estates of decedents dying before January 1, 2002,
22 and at the rate of nine per cent for estates of decedents dying
23 on or after January 1, 2002.
24 (2) Inheritance tax upon the transfer of property passing to
25 or for the use of all persons other than those designated in
26 subclause (1), (1.1), (1.2) or (1.3) or exempt under section
27 2111(m) shall be at the rate of fifteen per cent for estates of
28 decedents dying before January 1, 2002, and at the rate of
29 twelve per cent for estates of decedents dying on or after
30 January 1, 2002.
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1 (3) When property passes to or for the use of a husband and
2 wife with right of survivorship, one of whom is taxable at a
3 rate lower than the other, the lower rate of tax shall be
4 applied to the entire interest.
5 * * *
6 Section 2. This act shall take effect immediately.
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