PRINTER'S NO. 1111
No. 1027 Session of 1993
INTRODUCED BY O'BRIEN, ZUG, KING, MICOZZIE, STERN, GEIST, BROWN,
HARLEY, TRELLO, SCHULER, M. N. WRIGHT, KENNEY, HENNESSEY,
DeLUCA, FARGO, MILLER, GANNON, HALUSKA, ADOLPH, GERLACH,
STABACK, E. Z. TAYLOR, TOMLINSON, SAURMAN, PETRARCA, CORNELL
AND DONATUCCI, MARCH 29, 1993
REFERRED TO COMMITTEE ON FINANCE, MARCH 29, 1993
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," exempting inheritance tax upon transfers between
11 spouses, children, parents, grandparents and lineal
12 descendants.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 2111(m) and 2116(a) of the act of March
16 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
17 added August 4, 1991 (P.L.97, No.22), are amended to read:
18 Section 2111. Transfers Not Subject to Tax.--* * *
19 (m) Property owned by husband and wife with right of
20 survivorship is exempt from inheritance tax. [If the ownership
21 was created within the meaning of section 2107(c)(3), the entire
1 interest transferred shall be subject to tax under section
2 2107(c)(3) as though a part of the estate of the spouse who
3 created the co-ownership.] Transfers made to a spouse, child,
4 father, mother, grandfather, grandmother and lineal descendants
5 are exempt from inheritance tax.
6 * * *
7 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
8 shall not be imposed upon the transfer of property passing to or
9 for the use of any of the following [shall be at the rate of six
10 per cent]:
11 (i) grandfather, grandmother, father, mother, husband, wife
12 and lineal descendants; or
13 (ii) wife or widow and husband or widower of a child.
14 (2) Inheritance tax upon the transfer of property passing to
15 or for the use of all persons other than those designated in
16 subclause (1) shall be at the rate of fifteen per cent.
17 (3) When property passes to or for the use of a husband and
18 wife with right of survivorship, one of whom is exempt from
19 taxation or taxable at a rate lower than the other, the
20 exemption or lower rate of tax shall be applied to the entire
21 interest.
22 * * *
23 Section 2. This act shall apply to the estates of all
24 persons dying on or after January 1, 1994.
25 Section 3. This act shall take effect immediately.
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