PRINTER'S NO. 3901
No. 2730 Session of 2000
INTRODUCED BY ROBERTS, BELARDI, CORRIGAN, EGOLF, FARGO, FICHTER,
GRUCELA, HALUSKA, HESS, JAMES, MANN, MAYERNIK, McCALL, ORIE,
SAMUELSON, SAYLOR, SHANER, SOLOBAY, STABACK, TRELLO,
WOJNAROSKI AND YOUNGBLOOD, SEPTEMBER 25, 2000
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 25, 2000
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 exemptions.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 2111 of the act of March 4, 1971 (P.L.6,
14 No.2), known as the Tax Reform Code of 1971, added August 4,
15 1991 (P.L.97, No.22), is amended by adding a subsection to read:
16 Section 2111. Transfers Not Subject to Tax.--* * *
17 (s) For estates of decedents dying after June 30, 2003,
18 transfers of property to or for the use of any children of the
19 decedent are exempt from inheritance tax imposed under this
20 article.
21 Section 2. Section 2116(a) of the act, amended June 16, 1994
1 (P.L.279, No.48 and June 30, 1995 (P.L.139, No.21), is amended
2 to read:
3 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
4 upon the transfer of property passing to or for the use of any
5 of the following shall be at the rate of six per cent:
6 (i) grandfather, grandmother, father[,] or mother [and
7 lineal descendants; or];
8 (ii) wife or widow and husband or widower of a child[.]; or
9 (iii) except for any children of the decedent, any other
10 lineal descendants.
11 (1.1) Inheritance tax upon the transfer of property passing
12 to or for the use of a husband or wife shall be:
13 (i) At the rate of three per cent for estates of decedents
14 dying on or after July 1, 1994, and before January 1, 1995.
15 (ii) At a rate of zero per cent for estates of decedents
16 dying on or after January 1, 1995.
17 (1.2) Inheritance tax upon the transfer of property passing
18 to or for the use of any children of the decedent shall be at
19 the rate set forth as follows:
20 (i) Six per cent for estates of decedents dying before July
21 1, 2000.
22 (ii) Four per cent for estates of decedents dying after June
23 30, 2000, and before July 1, 2001.
24 (iii) Two per cent for estates of decedents dying after June
25 30, 2001, and before July 1, 2002.
26 (iv) One per cent for estates of decedents dying after June
27 30, 2002, and before July 1, 2003.
28 (v) Zero per cent for estates of decedents dying after June
29 30, 2003.
30 (2) Inheritance tax upon the transfer of property passing to
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1 or for the use of all persons other than those designated in
2 subclause (1) [or], (1.1) or (1.2) or exempt under section
3 2111(m) or (s) shall be at the rate of fifteen per cent.
4 (3) When property passes to or for the use of a husband and
5 wife with right of survivorship, one of whom is taxable at a
6 rate lower than the other, the lower rate of tax shall be
7 applied to the entire interest.
8 * * *
9 Section 3. This act shall take effect July 1, 2000, or
10 immediately, whichever is later.
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