|Posted:||December 20, 2016 02:11 PM|
|From:||Representative Thomas P. Murt|
|To:||All House members|
|Subject:||Inheritance Tax Elimination for Children with Disabilities (prior HB 136)|
|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% 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 violates the Pa 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.
Previous Cosponsors: BARRAR, V. BROWN, BROWNLEE, DEASY, FEE, GOODMAN, KINSEY, MACKENZIE, MILLARD, O'BRIEN, O'NEILL, READSHAW, REESE, ROSS, TALLMAN, WATSON, GIBBONS, McCARTER, MOUL, NEUMAN, FABRIZIO, RADER, STEPHENS, CALTAGIRONE, ROZZI, SCHLEGEL CULVER, GODSHALL, DiGIROLAMO, EVERETT, SANTARSIERO, WHEATLEY, GABLER, DONATUCCI, KORTZ, MATZIE, THOMAS, EVANKOVICH, STURLA, FRANKEL, GROVE, MILNE, HEFFLEY and P. DALEY
Introduced as HB415