PRINTER'S NO. 48
No. 38 Session of 1997
INTRODUCED BY O'BRIEN, YOUNGBLOOD, TRELLO, BOSCOLA, GEIST,
DEMPSEY, BEBKO-JONES, OLASZ, MICOZZIE, SATHER, LYNCH AND
E. Z. TAYLOR, JANUARY 28, 1997
REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 1997
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 exclusions
11 and for inheritance tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2111 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, is amended by
16 adding a subsection to read:
17 Section 2111. Transfers Not Subject to Tax.--* * *
18 (m.1) For estates of decedents dying after December 31,
19 2002, transfers of property to or for the use of the following
20 individuals are exempt from inheritance tax:
21 (1) A decedent's grandfather, grandmother, father, mother or
22 lineal descendant.
1 (2) A spouse of a child of the decedent.
2 (3) A widow or widower of a child of the decedent.
3 * * *
4 Section 2. Section 2116(a) of the act, amended June 16, 1994
5 (P.L.279, No.48) and June 30, 1995 (P.L.139, No.21), is amended
6 to read:
7 Section 2116. Inheritance Tax.--(a) [(1) Inheritance tax
8 upon the transfer of property passing to or for the use of any
9 of the following shall be at the rate of six per cent:
10 (i) grandfather, grandmother, father, mother and lineal
11 descendants; or
12 (ii) wife or widow and husband or widower of a child.]
13 (1.1) Inheritance tax upon the transfer of property passing
14 to or for the use of a husband or wife shall be:
15 (i) At the rate of three per cent for estates of decedents
16 dying on or after July 1, 1994, and before January 1, 1995.
17 (ii) At a rate of zero per cent for estates of decedents
18 dying on or after January 1, 1995.
19 (1.2) (i) Inheritance tax upon the transfer of property
20 passing to or for the use of any of the following shall be at
21 the rate set forth in paragraph (ii):
22 (A) A decedent's grandfather, grandmother, father, mother or
23 lineal descendant.
24 (B) A spouse of a child of the decedent.
25 (C) A widow or widower of a child of the decedent.
26 (ii) Inheritance tax rates upon the transfer of property
27 under paragraph (i) shall be as follows:
28 (A) Six per cent for estates of decedents dying before
29 January 1, 1998.
30 (B) Five per cent for estates of decedents dying after
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1 December 31, 1997, and before January 1, 1999.
2 (C) Four per cent for estates of decedents dying after
3 December 31, 1998, and before January 1, 2000.
4 (D) Three per cent for estates of decedents dying after
5 December 31, 1999, and before January 1, 2001.
6 (E) Two per cent for estates of decedents dying after
7 December 31, 2000, and before January 1, 2002.
8 (F) One per cent for estates of decedents dying after
9 December 31, 2001, and before January 1, 2003.
10 (2) Inheritance tax upon the transfer of property passing to
11 or for the use of all persons other than those designated in
12 subclause [(1) or] (1.1) or (1.2) or exempt under section
13 2111(m) or (m.1) shall be at the rate of fifteen per cent.
14 (3) When property passes to or for the use of a husband and
15 wife with right of survivorship, one of whom is taxable at a
16 rate lower than the other, the lower rate of tax shall be
17 applied to the entire interest.
18 * * *
19 Section 3. This act shall take effect immediately.
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