THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY FOLMER, WASHINGTON, ERICKSON, HUGHES, VANCE, RAFFERTY, D. WHITE, MENSCH, ROBBINS, PICCOLA, SCARNATI, M. WHITE, BOSCOLA, FARNESE, BROWNE, WOZNIAK, FERLO, ALLOWAY, TARTAGLIONE, STACK, BREWSTER, ARGALL, YUDICHAK AND KASUNIC, AUGUST 2, 2011

SENATOR BRUBAKER, FINANCE, AS AMENDED, NOVEMBER 16, 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," further providing for the definition of "child

with a disability"; and providing for inheritance tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2102 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is amended by

adding a definition to read:

Section 2102.  Definitions.--The following words, terms and

phrases, when used in this article, shall have the meanings

ascribed to them in this section, except where the context

clearly indicates a different meaning:

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"Child with a disability."  A child who is:

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(1)  under eighteen years of age at the time of the transfer

and has a medically determinable physical or mental impairment

or combination of impairments that cause marked and severe

functional limitations and which can be expected to result in

death or which impairment has lasted or can be expected to last

for a continuous period of not less than twelve months; or

(2)  eighteen years of age or older at the time of the

transfer and for whom onset of disability occurred before

twenty-two years of age and has the inability to engage in any

substantial gainful activity by reason of any medically

determinable physical or mental impairment which can be expected

to result in death or which has lasted or can be expected to

last for a continuous period of not less than twelve months.

"Child with a disability."  A person who:

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(1)  has been determined to be disabled for purposes of the

Supplemental Security Income program on or before attaining 22

years of age and is eligible to receive Supplemental Security

Income and medical assistance benefits; or

(2)  has been determined to be disabled for purposes of the

Supplemental Security Income program on or before attaining 18

years of age, regardless of whether the parental income levels

make the person eligible to receive Supplemental Security Income

and medical assistance benefits.

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Section 2.  Section 2116(a) of the act is amended by adding a

clause to read:

Section 2116.  Inheritance Tax.--(a)  * * *

(1.4)  Inheritance tax upon the transfer of property to a

child with a disability from a natural parent, an adoptive

parent or a stepparent of the child shall be at the rate of zero

per cent.

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Section 3.  This act shall apply to the estates of decedents

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dying on or after the effective date of this section.

Section 3 4.  This act shall take effect in 60 days.

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