PRINTER'S NO. 48
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
69
Session of
2015
INTRODUCED BY ALLOWAY, GREENLEAF, TEPLITZ, SCAVELLO, YAW,
BARTOLOTTA, VULAKOVICH, RAFFERTY, AUMENT, STEFANO, VOGEL,
BOSCOLA, WHITE AND BAKER, JANUARY 14, 2015
REFERRED TO FINANCE, JANUARY 14, 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 the
imposition of tax, for the rate of inheritance tax and for
returns.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2106 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, added August 4,
1991 (P.L.97, No.22), is amended to read:
Section 2106. Imposition of Tax.--(a) An inheritance tax
for the use of the Commonwealth is imposed upon every transfer
subject to tax under this article at the rates specified in
section 2116.
(b) This section shall not apply to the estates of decedents
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dying on or after January 1, 2023.
Section 2. 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[:] for estates of decedents dying before January 1, 2016;
at the rate of two and one-half per cent for estates of
decedents dying on or after January 1, 2016, and before January
1, 2017; and at the rate of one-half per cent for estates of
decedents dying on or after January 1, 2017, and before January
1, 2018; and at the rate of zero per cent for estates of
decedents dying on or after January 1, 2018:
(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[.] for estates of decedents dying before January 1,
2016; at the rate of ten per cent for estates of decedents dying
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on or after January 1, 2016, and before January 1, 2017; at the
rate of eight per cent for estates of decedents dying on or
after January 1, 2017, and before January 1, 2018; at the rate
of six per cent for estates of decedents dying on or after
January 1, 2018, and before January 1, 2019; at the rate of four
per cent for estates of decedents dying on or after January 1,
2019, and before January 1, 2020; at the rate of two per cent
for estates of decedents dying on or after January 1, 2020, and
before January 1, 2021; and at the rate of zero per cent for
estates of decedents dying on or after January 1, 2021.
(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[.] for estates
of decedents dying before January 1, 2016; at the rate of
thirteen per cent for estates of decedents dying on or after
January 1, 2016, and before January 1, 2017, at the rate of
eleven per cent for estates of decedents dying on or after
January 1, 2017, and before January 1, 2018; at the rate of nine
per cent for estates of decedents dying on or after January 1,
2018, and before January 1, 2019; at the rate of seven per cent
for estates of decedents dying on or after January 1, 2019, and
before January 1, 2020; at the rate of five per cent for estates
of decedents dying on or after January 1, 2020, and before
January 1, 2021; at the rate of three per cent for estates of
decedents dying on or after January 1, 2021, and before January
1, 2022; at the rate of one per cent for estates of decedents
dying on or after January 1, 2022, and before January 1, 2023;
and at the rate of zero per cent for estates of decedents dying
on or after January 1, 2023.
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(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 3. Section 2136 of the act is amended by adding a
subsection to read:
Section 2136. Returns.--* * *
(g) This section shall not apply to the estates of decedents
dying on or after January 1, 2023, except as referenced by
section 2145.
Section 4. This act shall take effect immediately.
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