1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," repealing imposition of tax; and further
11providing for inheritance tax.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 2106 of the act of March 4, 1971 (P.L.6, 
15No.2), known as the Tax Reform Code of 1971, added August 4,
161991 (P.L.97, No.22), is repealed:

17[Section 2106.  Imposition of Tax.--An inheritance tax for
18the use of the Commonwealth is imposed upon every transfer
19subject to tax under this article at the rates specified in
20section 2116.]

21Section 2.  Section 2116(a) of the act, amended May 24, 2000

1(P.L.106, No.23), is amended and the section is amended by
2adding subsections to read:

3Section 2116.  Inheritance Tax.--(a)  (1)  [Inheritance]
4Except as provided in subsections (a.1) and (a.2), inheritance
5tax upon the transfer of property passing to or for the use of
6any of the following shall be at the rate of four and one-half
7per cent:

8(i)  grandfather, grandmother, father, mother, except
9transfers under subclause (1.2), and lineal descendants; or

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

11(1.1)  Inheritance tax upon the transfer of property passing
12to or for the use of a husband or wife shall be:

13(i)  At the rate of three per cent for estates of decedents
14dying on or after July 1, 1994, and before January 1, 1995.

15(ii)  At a rate of zero per cent for estates of decedents
16dying on or after January 1, 1995.

17(1.2)  Inheritance tax upon the transfer of property from a
18child twenty-one years of age or younger to or for the use of a
19natural parent, an adoptive parent or a stepparent of the child
20shall be at the rate of zero per cent.

21(1.3)  Inheritance tax upon the transfer of property passing
22to or for the use of a sibling shall be at the rate of twelve
23per cent.

24(2)  Inheritance tax upon the transfer of property passing to
25or for the use of all persons other than those designated in
26subclause (1), (1.1), (1.2) or (1.3) or exempt under section
272111(m) shall be at the rate of fifteen per cent.

28(3)  When property passes to or for the use of a husband and
29wife with right of survivorship, one of whom is taxable at a
30rate lower than the other, the lower rate of tax shall be

1applied to the entire interest.

2(a.1)  Beginning January 1, 2014, inheritance tax upon the
3transfer of property passing from the estate of a decedent dying
4on or after January 1, 2014, to or for the use of a father,
5mother, child or grandchild shall be at the rate of two and one-
6quarter per cent.

7(a.2)  Beginning January 1, 2014, inheritance tax upon the
8transfer of property passing from the estate of a decedent dying
9on or after January 1, 2014, to transferees not included in
10subsection (a.1) shall be at the rate of seven and one-half per
11cent.

12* * *

13Section 3.  This act shall take effect as follows:

14(1)  This section shall take effect immediately.

15(2)  The repeal of section 2106 of the act shall take 
16effect January 1, 2015.

17(3)  The remainder of this act shall take effect in 60
18days.