H1864B2401A07004     BIL:JB  12/06/11     #90        A07004

AMENDMENTS TO HOUSE BILL NO. 1864

Sponsor: REPRESENTATIVE JOSEPHS

Printer's No. 2401

Amend Bill, page 1, line 10, by inserting after "providing"

 for definitions,

Amend Bill, page 1, line 11, by inserting after "tax"

 and for rate of tax

Amend Bill, page 1, lines 14 through 16, by striking out all

of said lines and inserting

Section 1.  Section 2102 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is amended by

adding a definition to read:

Section 2102.  Definitions.--The following words, terms and

phrases, when used in this article, shall have the meanings

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

"Domestic partnership."  A relationship between two

individuals who:

(1)  are at least 18 years of age;

(2)  are not related to each other by blood or marriage

within four degrees of consanguinity;

(3)  are not married or in a civil union or domestic

partnership with another individual; and

(4)  agree to be in a relationship of mutual interdependence

in which each individual contributes to the maintenance and

support of the other individual and the relationship, even if

both individuals are not required to contribute equally to the

relationship.

* * *

Section 2.  Section 2111 of the act is amended by adding a

subsection to read:

Amend Bill, page 2, by inserting between lines 3 and 4

Section 3.  Section 2116(a) of the act, amended May 24, 2000

(P.L.106, No.23), is amended to read:

Section 2116.  Inheritance Tax.--(a)  (1)  Inheritance tax

upon the transfer of property passing to or for the use of any

of the following shall be at the rate of four and one-half per

cent:

(i)  grandfather, grandmother, father, mother, except

transfers under subclause (1.2), and lineal descendants; or

(ii)  wife or widow and husband or widower of a child.

(1.1)  Inheritance tax upon the transfer of property passing

to or for the use of a husband or wife shall be:

(i)  At the rate of three per cent for estates of decedents

dying on or after July 1, 1994, and before January 1, 1995.

(ii)  At a rate of zero per cent for estates of decedents

dying on or after January 1, 1995.

(1.2)  Inheritance tax upon the transfer of property from a

child twenty-one years of age or younger to or for the use of a

natural parent, an adoptive parent or a stepparent of the child

shall be at the rate of zero per cent.

(1.3)  Inheritance tax upon the transfer of property passing

to or for the use of a sibling shall be at the rate of twelve

per cent.

(1.4)  Inheritance tax upon the transfer of property passing

from an individual in a domestic partnership to or for the use

of the other individual in the domestic partnership shall be at

the rate of zero per cent for estates of decedents dying on or

after January 1, 2012. The department may require an individual

who asserts a domestic partnership under this subclause to

provide:

(i)  An affidavit signed under penalty of perjury by two

individuals stating that they have established a domestic

partnership.

(ii)  Proof of any two of the following existing prior to

death:

(A)  Joint liability of the individuals for a mortgage, lease

or loan.

(B)  The designation of one of the individuals as the primary

beneficiary under a life insurance policy on the life of the

other individual or under a retirement plan of the other

individual.

(C)  The designation of one of the individuals as the primary

beneficiary of the will of the other individual.

(D)  A durable power of attorney for health care or financial

management granted by one of the individuals to the other

individual.

(E)  Joint ownership or lease by the individuals of real

estate or a motor vehicle.

(F)  A joint checking account, joint investments or a joint

credit account.

(G)  A joint renter's or homeowner's insurance policy.

(H)  Coverage on a health insurance policy.

(I)  Joint responsibility for child care, such as

guardianship or school documents.

(J)  A relationship or cohabitation contract.

(2)  Inheritance tax upon the transfer of property passing to

or for the use of all persons other than those designated in

subclause (1), (1.1), (1.2) [or], (1.3) or (1.4) or exempt under

section 2111(m) shall be at the rate of fifteen per cent.

(3)  When property passes to or for the use of a husband and

wife with right of survivorship, one of whom is taxable at a

rate lower than the other, the lower rate of tax shall be

applied to the entire interest.

* * *

Amend Bill, page 2, line 4, by striking out "2" and inserting

 4

Amend Bill, page 2, line 6, by striking out "3" and inserting

 5