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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | March 3, 2014 03:26 PM |
|---|---|
| From: | Representative Michele Brooks |
| To: | All House members |
| Subject: | Inheritance Tax Phase Out |
| In the near future, I plan to introduce two pieces of legislation that will gradually phase out the burdensome inheritance tax on transfers of assets between immediate family members. In 2012, the Commonwealth collected over $414 million in inheritance tax revenues from inherited assets transferred between lineal heirs. In addition, over $76 million was collected in 2012 from transfers of inherited assets between siblings. Lineal heirs are considered a grandparent, parent, child or child’s spouse and a child is considered a natural child, adopted child, or step-child. Any transfer bequeathed to a lineal heir is taxed under current law at a rate of 4.5%. Siblings, on the other hand, are considered those having one parent in common with the decedent, related by blood or adoption. Any transfer bequeathed to a sibling heir is taxed under current law at a rate of 12%. I have long believed that the inheritance tax amounts to double taxation upon the death of a loved one and I am committed to eliminating this burdensome tax on families. The first piece of legislation that I will introduce will phase out the 4.5% lineal inheritance tax rate over a 10 year period ending in Fiscal Year 2024-2025. The second piece of legislation will phase out the 12% sibling inheritance tax rate over an eight year period ending in Fiscal Year 2022-2023. Although I would like to eliminate this tax in a shorter time period, I realize that this is a loss to the General Fund and, therefore, must be done gradually. I hope you join me in cosponsoring this important legislation. |
Introduced as HB2231