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PRINTER'S NO. 870
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
736
Session of
2015
INTRODUCED BY HANNA, KINSEY, McNEILL, BROWNLEE, MURT, READSHAW
AND GILLEN, MARCH 6, 2015
REFERRED TO COMMITTEE ON FINANCE, MARCH 6, 2015
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," in inheritance tax, further providing for
transfers not subject to tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2111(s) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, added July
2, 2012 (P.L.751, No.85), is amended to read:
Section 2111. Transfers Not Subject to Tax.--* * *
(s) A transfer of real estate devoted to the business of
agriculture between members of the same family, provided that
after the transfer the real estate continues to be devoted to
the business of agriculture for a period of seven years beyond
the transferor's date of death and the real estate derives a
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yearly gross income of at least two thousand dollars ($2,000),
provided that:
(1) Any tract of land under this article which is no longer
devoted to the business of agriculture within seven years beyond
the transferor's date of death shall be subject to inheritance
tax due the Commonwealth under section 2107, in the amount that
would have been paid or payable on the basis of valuation
authorized under section 2121 for nonexempt transfers of
property, plus interest thereon accruing as of the transferor's
date of death, at the rate established in section 2143.
(2) Any tax imposed under section 2107 shall be a lien in
favor of the Commonwealth upon the property no longer being
devoted to agricultural use, collectible in the manner provided
for by law for the collection of delinquent real estate taxes,
as well as the personal obligation of the owner of the property
at the time of the change of use.
(3) Every owner of real estate exempt under this subsection
shall certify to the department on an annual basis that the land
qualifies for this exemption and shall notify the department
within thirty days of any transaction or occurrence causing the
real estate to fail to qualify for the exemption. Each year the
department shall inform all owners of their obligation to
provide an annual certification under this subclause. This
certification and notification shall be completed in the form
and manner as provided by the department.
(4) Any real estate that is, or is situated on, forest land
shall not be subject to the gross yearly income requirement.
* * *
Section 2. This act shall take effect in 60 days.
20150HB0736PN0870 - 2 -
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