THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DeLUCA, BARRAR, BOYD, CALTAGIRONE, CLYMER, D. COSTA, DENLINGER, EVERETT, FLECK, GEIST, GRELL, HESS, HORNAMAN, KULA, MILLARD, PETRARCA, REICHLEY, SWANGER, J. TAYLOR, VULAKOVICH, YOUNGBLOOD AND KAVULICH, FEBRUARY 2, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 2, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," further providing for inheritance tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2116(a) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, 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]

six per cent.

(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 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.

* * *

Section 2.  This act shall take effect in 60 days.