|Posted:||January 16, 2018 11:17 AM|
|From:||Representative Greg Rothman|
|To:||All House members|
|Subject:||Elimination of Pennsylvania Inheritance Tax|
In the near future, I will be introducing legislation that will eliminate the Pennsylvania Inheritance Tax by removing Article XXI from the Tax Reform Code.
Presently, the Pennsylvania inheritance tax is imposed as a percentage of the value of a decedent’s estate transferred to beneficiaries by will, heirs by intestacy and transferees by operation of law. The tax rate depends on the relationship of the heir to the decedent and ranges from 0% to 15%. Pennsylvania has no general exclusion amount. Therefore, the first dollar of the taxable estate (gross estate less allowable deductions) is subject to tax.
The Federal inheritance/estate tax is applied to the transfer of property to an heir after the passing away of the original owner. Federal tax is calculated based on the fair market value of the property transferred to the beneficiary of the estate. However, unlike Pennsylvania, the federal estate tax has a general exclusion amount. In 2017 the exclusion amount was $5,490,000. Under the Tax Cut and Jobs Act, the filing threshold was increased to $10,000,000 for 2018, and is adjusted for inflation thereafter.
The elimination of this harmful tax at the state level will protect against double taxation, ensure that inheritance goes to the family or heirs it was meant to go to and help preserve individuals who receive an inheritance from ending up with a tax bill at a time when they are also grieving.
Please join me in co-sponsoring this important legislation
Introduced as HB2054