THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PERRY, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOYD, D. COSTA, COX, CREIGHTON, CUTLER, DONATUCCI, EVERETT, GABLER, GEIST, GILLEN, GILLESPIE, GINGRICH, GOODMAN, HARHART, HARRIS, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, M. K. KELLER, KILLION, MAJOR, MARSHALL, MARSICO, METCALFE, METZGAR, MILLARD, MILLER, MURT, MUSTIO, PETRARCA, PICKETT, PYLE, RAPP, READSHAW, REESE, REICHLEY, ROAE, ROCK, SONNEY, STERN, STEVENSON, SWANGER, TOEPEL, VULAKOVICH, YOUNGBLOOD AND MOUL, APRIL 6, 2011

REFERRED TO COMMITTEE ON FINANCE, APRIL 6, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in inheritance tax, providing for expiration and

further providing for imposition of tax, for inheritance tax

rates and for estate tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding a section to

read:

Section 2104.  Expiration.--The provisions of this article

shall not apply to the estates of decedents dying on or after

January 1, 2016.

Section 2.  Section 2106 of the act, added August 4, 1991

(P.L.97, No.22), is amended to read:

Section 2106.  Imposition of Tax.--(a)  An inheritance tax

for the use of the Commonwealth is imposed upon every transfer

subject to tax under this article at the rates specified in

section 2116.

(b)  This section shall not apply to the estates of decedents

dying on or after January 1, 2017.

Section 3.  Section 2116(a) of the act, amended May 24, 2000

(P.L.106, No.23), is amended to read:

Section 2116.  Inheritance Tax.--(a)  (1)  Inheritance tax

upon the transfer of property passing to or for the use of [any

of the following shall be at the rate of four and one-half per

cent:

(i)  grandfather, grandmother, father, mother, except

transfers under subclause (1.2), and lineal descendants; or

(ii)  wife or widow and husband or widower of a child.] a

grandfather, grandmother, father, mother, except transfers under

subclause (1.2), lineal descendants, wife or widow and husband

or widower of a child shall be at the rate provided in the

following schedule:

(i)  Four and one-half per cent for the estate of a decedent

dying before or during calendar year 2012.

(ii)  Two per cent for the estate of a decedent dying during

calendar year 2013.

(iii)  Zero per cent for the estate of a decedent dying

during or after calendar year 2014.

(1.1)  Inheritance tax upon the transfer of property passing

to or for the use of a husband or wife shall be:

(i)  At the rate of three per cent for estates of decedents

dying on or after July 1, 1994, and before January 1, 1995.

(ii)  At a rate of zero per cent for estates of decedents

dying on or after January 1, 1995.

(1.2)  Inheritance tax upon the transfer of property from a

child twenty-one years of age or younger to or for the use of a

natural parent, an adoptive parent or a stepparent of the child

shall be at the rate of zero per cent.

(1.3)  Inheritance tax upon the transfer of property passing

to or for the use of a sibling shall be at the rate [of twelve

per cent.] provided in the following schedule:

(i)  Twelve per cent for the estate of a decedent dying

before or during calendar year 2012.

(ii)  Nine per cent for the estate of a decedent dying during

calendar year 2013.

(iii)  Six per cent for the estate of a decedent dying during

or after calendar year 2014.

(iv)  Four and one-half per cent for the estate of a decedent

dying during calendar year 2015.

(v)  Two per cent for the estate of a decedent dying during

calendar year 2016.

(vi)  Zero per cent for the estate of a decedent dying during

or after calendar year 2017.

(1.4)  Inheritance tax upon the transfer of property that is

jointly held between a child and a natural parent, an adoptive

parent or a stepparent of the child to the natural parent,

adoptive parent or the stepparent shall be at the rate of zero

per cent.

(2)  Inheritance tax upon the transfer of property passing to

or for the use of all persons other than those designated in

subclause (1), (1.1), (1.2) or (1.3) or exempt under section

2111(m) shall be at the rate [of fifteen per cent.] provided in

the following schedule:

(i)  Fifteen per cent for the estate of a decedent dying

before or during calendar year 2012.

(ii)  Ten per cent for the estate of a decedent dying during

calendar year 2013.

(iii)  Seven per cent for the estate of a decedent dying

during or after calendar year 2014.

(iv)  Four and one-half per cent for the estate of a decedent

dying during calendar year 2015.

(v)  Two per cent for the estate of a decedent dying during

calendar year 2016.

(vi)  Zero per cent for the estate of a decedent dying during

or after calendar year 2017.

(3)  When property passes to or for the use of a husband and

wife with right of survivorship, one of whom is taxable at a

rate lower than the other, the lower rate of tax shall be

applied to the entire interest.

* * *

Section 4.  Section 2117 of the act is amended by adding a

subsection to read:

Section 2117.  Estate Tax.--* * *

(d)  This section shall not apply to the estates of decedents

dying on or after January 1, 2017.

Section 5.  This act shall take effect July 1, 2011, or

immediately, whichever is later.