PRINTER'S NO. 3458
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2303
Session of
2018
INTRODUCED BY CORR, BERNSTINE, CORBIN, DALEY, DUNBAR, HILL-
EVANS, B. MILLER, PICKETT, M. QUINN, RYAN AND SCHEMEL,
APRIL 30, 2018
REFERRED TO COMMITTEE ON FINANCE, APRIL 30, 2018
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 personal income tax, providing for revocable
trusts treated as part of estate.
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 336.3. Revocable Trusts Treated as Part of Estate.--
(a) For purposes of this article, if both the executor of an
estate and the trustee of a qualified revocable trust elect the
treatment provided under this section, the trust shall be
treated and taxed as part of the estate and not as a separate
trust for all taxable years of the estate ending after the date
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of the decedent's death and before the applicable date.
(b) The election under subsection (a) shall be made not
later than the time prescribed for filing the return of tax
imposed under this article for the first taxable year of the
estate, determined with regard to extensions and, once made,
shall be irrevocable.
(c) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Applicable date" means:
(1) if no return of tax imposed by Article XXI is required
to be filed, the date which is two years after the date of the
decedent's death; or
(2) if a return of tax imposed by Article XXI is required to
be filed, the date which is six months after the date of the
final determination of the liability for tax imposed by Article
XXI.
"Qualified revocable trust" means any trust or portion of a
trust which was treated under section 2107(c)(7) as owned by the
decedent of the estate referred to in subsection (a) by reason
of a power in the grantor.
Section 2. The addition of section 336.3 of the act shall
apply to tax years beginning after December 31, 2018.
Section 3. This act shall take effect in 60 days.
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