PRINTER'S NO. 2068
No. 1680 Session of 2001
INTRODUCED BY WATSON, BENNINGHOFF, E. Z. TAYLOR, McILHINNEY,
ALLEN, M. BAKER, BARRAR, CALTAGIRONE, CAPPELLI, COSTA, DALEY,
EGOLF, FEESE, FICHTER, GEORGE, GODSHALL, HERMAN, HERSHEY,
HUTCHINSON, JADLOWIEC, LAUGHLIN, LEDERER, MAJOR, McCALL,
McILHATTAN, McNAUGHTON, R. MILLER, PIPPY, RAYMOND, ROSS,
RUBLEY, SAMUELSON, SATHER, SAYLOR, SCHULER, STABACK,
T. STEVENSON, WILT, WOJNAROSKI, ZUG, STEIL, BROWNE, SHANER,
GEIST, CLARK AND SOLOBAY, JUNE 4, 2001
REFERRED TO COMMITTEE ON FINANCE, JUNE 4, 2001
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for inheritance tax rates.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 2116(a) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
15 24, 2000 (P.L.106, No.23), is amended to read:
16 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
17 upon the transfer of property passing to or for the use of any
18 of the following shall be at the rate of [four and one-half]
19 three per cent:
1 (i) grandfather, grandmother, father, mother, except
2 transfers under subclause (1.2), and lineal descendants; or
3 (ii) wife or widow and husband or widower of a child.
4 (1.1) Inheritance tax upon the transfer of property passing
5 to or for the use of a husband or wife shall be:
6 (i) At the rate of three per cent for estates of decedents
7 dying on or after July 1, 1994, and before January 1, 1995.
8 (ii) At a rate of zero per cent for estates of decedents
9 dying on or after January 1, 1995.
10 (1.2) Inheritance tax upon the transfer of property from a
11 child twenty-one years of age or younger to or for the use of a
12 natural parent, an adoptive parent or a stepparent of the child
13 shall be at the rate of zero per cent.
14 (1.3) Inheritance tax upon the transfer of property passing
15 to or for the use of a sibling shall be at the rate of [twelve]
16 ten per cent.
17 (2) Inheritance tax upon the transfer of property passing to
18 or for the use of all persons other than those designated in
19 subclause (1), (1.1), (1.2) or (1.3) or exempt under section
20 2111(m) shall be at the rate of [fifteen] twelve per cent.
21 (3) When property passes to or for the use of a husband and
22 wife with right of survivorship, one of whom is taxable at a
23 rate lower than the other, the lower rate of tax shall be
24 applied to the entire interest.
25 * * *
26 Section 2. This act shall apply to the estates of decedents
27 dying after June 30, 2001, and to inter vivos transfers made by
28 decedents dying after June 30, 2001, regardless of the date of
29 the transfer.
30 Section 3. This act shall take effect immediately.
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