1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," further providing for rate of inheritance tax.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 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
1524, 2000 (P.L.106, No.23), is amended to read:

16Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
17upon the transfer of property passing to or for the use of any
18of the following shall be at the rate of [four and one-half] two 

1and one-quarter per cent:

2(i) grandfather, grandmother, father, mother, except
3transfers under subclause (1.2), and lineal descendants; or

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

5(1.1) Inheritance tax upon the transfer of property passing
6to or for the use of a husband or wife shall be:

7(i) At the rate of three per cent for estates of decedents
8dying on or after July 1, 1994, and before January 1, 1995.

9(ii) At a rate of zero per cent for estates of decedents
10dying on or after January 1, 1995.

11(1.2) Inheritance tax upon the transfer of property from a
12child twenty-one years of age or younger to or for the use of a
13natural parent, an adoptive parent or a stepparent of the child
14shall be at the rate of zero per cent.

15(1.3) Inheritance tax upon the transfer of property passing
16to or for the use of a sibling shall be at the rate of [twelve]
17six per cent.

18(2) Inheritance tax upon the transfer of property passing to
19or for the use of all persons other than those designated in
20subclause (1), (1.1), (1.2) or (1.3) or exempt under section
212111(m) shall be at the rate of [fifteen] seven and one-half per
22cent.

23(3) When property passes to or for the use of a husband and
24wife with right of survivorship, one of whom is taxable at a
25rate lower than the other, the lower rate of tax shall be
26applied to the entire interest.

27* * *

28Section 2. This act shall take effect July 1, 2013, or
29immediately, whichever is later.