PRINTER'S NO. 2552
No. 1966 Session of 2001
INTRODUCED BY CALTAGIRONE, ALLEN, ARMSTRONG, BEBKO-JONES,
BELARDI, BELFANTI, CAPPELLI, CAWLEY, CORNELL, COY, CREIGHTON,
DAILEY, EGOLF, FEESE, GABIG, GEORGE, GRUCELA, HARHART, HASAY,
WILT, HERMAN, HUTCHINSON, JAMES, LAUGHLIN, LEH, MANN,
MAYERNIK, McNAUGHTON, METCALFE, S. MILLER, READSHAW, SHANER,
SOLOBAY, STABACK, STERN, R. STEVENSON, THOMAS, TRICH AND
YOUNGBLOOD, SEPTEMBER 26, 2001
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 26, 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 rate of inheritance tax.
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
19 cent for estates of decedents dying before January 1, 2001; four
1 per cent for estates of decedents dying after December 31, 2000,
2 and before January 1, 2002; three per cent for estates of
3 decedents dying after December 31, 2001, and before January 1,
4 2003; two per cent for estates of decedents dying after December
5 31, 2002, and before January 1, 2004; one per cent for estates
6 of decedents dying after December 31, 2003, and before January
7 1, 2005; and zero per cent for estates of decedents dying after
8 December 31, 2004:
9 (i) grandfather, grandmother, father, mother, except
10 transfers under subclause (1.2), and lineal descendants; or
11 (ii) wife or widow and husband or widower of a child.
12 (1.1) Inheritance tax upon the transfer of property passing
13 to or for the use of a husband or wife shall be:
14 (i) At the rate of three per cent for estates of decedents
15 dying on or after July 1, 1994, and before January 1, 1995.
16 (ii) At a rate of zero per cent for estates of decedents
17 dying on or after January 1, 1995.
18 (1.2) Inheritance tax upon the transfer of property from a
19 child twenty-one years of age or younger to or for the use of a
20 natural parent, an adoptive parent or a stepparent of the child
21 shall be at the rate of zero per cent.
22 (1.3) Inheritance tax upon the transfer of property passing
23 to or for the use of a sibling shall be at the rate of twelve
24 per cent[.] for estates of decedents dying before January 1,
25 2001; nine per cent for estates of decedents dying after
26 December 31, 2000, and before January 1, 2002; six per cent for
27 estates of decedents dying after December 31, 2001, and before
28 January 1, 2003; three per cent for estates of decedents dying
29 after December 31, 2002, and before January 1, 2004; two per
30 cent for estates of decedents dying after December 31, 2003, and
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1 before January 1, 2005; and zero per cent for estates of
2 decedents dying after December 31, 2004.
3 (2) Inheritance tax upon the transfer of property passing to
4 or for the use of all persons other than those designated in
5 subclause (1), (1.1), (1.2) or (1.3) or exempt under section
6 2111(m) shall be at the rate of fifteen per cent[.] for estates
7 of decedents dying before January 1, 2001; twelve per cent for
8 estates of decedents dying after December 31, 2000, and before
9 January 1, 2002; nine per cent for estates of decedents dying
10 after December 31, 2001, and before January 1, 2003; six per
11 cent for estates of decedents dying after December 31, 2002, and
12 before January 1, 2004; three per cent for estates of decedents
13 dying after December 31, 2003, and before January 1, 2005; and
14 zero per cent for estates of decedents dying after December 31,
15 2004.
16 (3) When property passes to or for the use of a husband and
17 wife with right of survivorship, one of whom is taxable at a
18 rate lower than the other, the lower rate of tax shall be
19 applied to the entire interest.
20 * * *
21 Section 2. This act shall take effect immediately.
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