|Posted:||December 17, 2014 09:46 AM|
|From:||Representative Thomas P. Murt|
|To:||All House members|
|Subject:||Inheritance Tax Elimination for Children with Disabilities (Prior HB 655)|
|I will be reintroducing legislation to amend the Tax Reform Code to add and define “child with a disability” and to eliminate the inheritance tax that is applied when assets are transferred from a deceased parent to a disabled child.
Under the current law when a deceased parent transfers property and assets to a disabled child, a 4.5% inheritance tax is applied. The legislation that I am proposing will reduce the 4.5% inheritance tax to ZERO percent upon the transfer of property or assets from a deceased parent, adoptive parent, or a stepparent to a disabled child.
The Department of Revenue does not believe this proposed legislation violates the Pennsylvania Constitution’s Uniformity Clause. Article VIII, Section 2 (b) (iii) of Pennsylvania’s Constitution permits the General Assembly to establish disabled individuals as a class of persons determined to be in need of a tax exemption.
Introduced as HB136