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," further providing for inheritance tax.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 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
1524, 2000 (P.L.106, No.23), is amended to read:

16Section 2116.  Inheritance Tax.--(a)  (1)  Inheritance tax
17upon the transfer of property passing to or for the use of [any
18of the following shall be at the rate of four and one-half per
19cent:

20(i)  grandfather, grandmother, father, mother, except
21transfers under subclause (1.2), and lineal descendants; or

1(ii)  wife or widow and husband or widower of a child.] a 
2grandfather, grandmother, father, mother, except transfers under 
3subclause (1.2), lineal descendants, wife or widow and husband 
4or widower of a child shall be at the rate provided in the 
5following schedule:

6(i)  Four and one-half per cent for the estate of a decedent
7dying before or during calendar year 2013.

8(ii)  Two per cent for the estate of a decedent dying during
9calendar year 2014.

10(iii)  Zero per cent for the estate of a decedent dying
11during or after calendar year 2015.

12(1.1)  Inheritance tax upon the transfer of property passing
13to or for the use of a husband or wife shall be:

14(i)  At the rate of three per cent for estates of decedents
15dying on or after July 1, 1994, and before January 1, 1995.

16(ii)  At a rate of zero per cent for estates of decedents
17dying on or after January 1, 1995.

18(1.2)  Inheritance tax upon the transfer of property from a
19child twenty-one years of age or younger to or for the use of a
20natural parent, an adoptive parent or a stepparent of the child
21shall be at the rate of zero per cent.

22(1.3)  Inheritance tax upon the transfer of property passing
23to or for the use of a sibling shall be at the rate [of twelve
24per cent.] provided in the following schedule:

25(i)  Twelve per cent for the estate of a decedent dying
26before or during calendar year 2013.

27(ii)  Nine per cent for the estate of a decedent dying during
28calendar year 2014.

29(iii)  Six per cent for the estate of a decedent dying during
30calendar year 2015.

1(iv)  Three per cent for the estate of a decedent dying
2during calendar year 2016.

3(v)  Zero percent for the estate of a decedent dying during
4or after calendar year 2017.

5(2)  Inheritance tax upon the transfer of property passing to
6or for the use of all persons other than those designated in
7subclause (1), (1.1), (1.2) or (1.3) or exempt under section
82111(m) shall be at the rate [of fifteen per cent.] provided in 
9the following schedule:

10(i)  Fifteen per cent for the estate of a decedent dying
11before or during calendar year 2014.

12(ii)  Twelve per cent for the estate of a decedent dying
13during calendar year 2015.

14(iii)  Nine per cent for the estate of a decedent dying
15during calendar year 2016.

16(iv)  Six per cent for the estate of a decedent dying during
17calendar year 2017.

18(v)  Three per cent for the estate of a decedent dying during
19calendar year 2018.

20(vi)  Zero per cent for the estate of a decedent dying during
21or after calendar year 2019.

22(3)  When property passes to or for the use of a husband and
23wife with right of survivorship, one of whom is taxable at a
24rate lower than the other, the lower rate of tax shall be
25applied to the entire interest.

26* * *

27Section 2.  This act shall take effect immediately.