PRINTER'S NO. 156
No. 131 Session of 2001
INTRODUCED BY CORMAN, EARLL, COSTA, GERLACH, WAGNER, HELFRICK,
MUSTO, RHOADES, STOUT, TOMLINSON, O'PAKE, HOLL, TARTAGLIONE,
WAUGH, DENT, BOSCOLA, JUBELIRER, LOGAN AND SCARNATI,
JANUARY 30, 2001
REFERRED TO FINANCE, JANUARY 30, 2001
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 rate of inheritance tax.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 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
15 24, 2000 (P.L.106, No.23), is amended to read:
16 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
17 upon the transfer of property passing to or for the use of any
18 of the following shall be at the rate of [four and one-half]
19 four per cent for estates of decedents dying after December 31,
20 2001, and before January 1, 2003; three and one-half per cent
21 for estates of decedents dying after December 31, 2002, and
1 before January 1, 2004; three per cent for estates of decedents
2 dying after December 31, 2003, and before January 1, 2005; two
3 and one-half per cent for estates of decedents dying after
4 December 31, 2004, and before January 1, 2006; two per cent for
5 estates of decedents dying after December 31, 2005, and before
6 January 1, 2007; one and one-half per cent for estates of
7 decedents dying after December 31, 2006, and before January 1,
8 2008; one per cent for estates of decedents dying after December
9 31, 2007, and before January 1, 2009; and zero per cent for
10 estates of decedents dying after December 31, 2008:
11 (i) grandfather, grandmother, father, mother and lineal
12 descendants; or
13 (ii) wife or widow and husband or widower of a child.
14 (1.1) Inheritance tax upon the transfer of property passing
15 to or for the use of a husband or wife shall be:
16 (i) At the rate of three per cent for estates of decedents
17 dying on or after July 1, 1994, and before January 1, 1995.
18 (ii) At a rate of zero per cent for estates of decedents
19 dying on or after January 1, 1995.
20 (1.2) Inheritance tax upon the transfer of property from a
21 child twenty-one years of age or younger to or for the use of a
22 natural parent, an adoptive parent or a stepparent of the child
23 shall be at the rate of zero per cent.
24 (1.3) Inheritance tax upon the transfer of property passing
25 to or for the use of a sibling shall be at the rate of [twelve]
26 nine per cent[.]; eight per cent for estates of decedents dying
27 after December 31, 2001, and before January 1, 2003; seven per
28 cent for estates of decedents dying after December 31, 2002, and
29 before January 1, 2004; six per cent for estates of decedents
30 dying after December 31, 2003, and before January 1, 2005; five
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1 per cent for estates of decedents dying after December 31, 2004,
2 and before January 1, 2006; four per cent for estates of
3 decedents dying after December 31, 2005, and before January 1,
4 2007; three per cent for estates of decedents dying after
5 December 31, 2006, and before January 1, 2008; two per cent for
6 estates of decedents dying after December 31, 2007, and before
7 January 1, 2009; and zero per cent for estates of decedents
8 dying after December 31, 2008.
9 (2) Inheritance tax upon the transfer of property passing to
10 or for the use of all persons other than those designated in
11 subclause (1), (1.1), (1.2) or (1.3) or exempt under section
12 2111(m) shall be at the rate of [fifteen] fourteen per cent for
13 estates of decedents dying after December 31, 2001, and before
14 January 1, 2003; thirteen per cent for estates of decedents
15 dying after December 31, 2002, and before January 1, 2004;
16 twelve per cent for estates of decedents dying after December
17 31, 2003, and before January 1, 2005; eleven per cent for
18 estates of decedents dying after December 31, 2004, and before
19 January 1, 2006; ten per cent for estates of decedents dying
20 after December 31, 2005, and before January 1, 2007; eight per
21 cent for estates of decedents dying after December 31, 2006, and
22 before January 1, 2008; six per cent for estates of decedents
23 dying after December 31, 2007, and before January 1, 2009; four
24 per cent for estates of decedents dying after December 31, 2008,
25 and before January 1, 2010; two per cent for estates of
26 decedents dying after December 31, 2009, and before January 1,
27 2011; and zero per cent for estates of decedents dying after
28 December 31, 2010.
29 (3) When property passes to or for the use of a husband and
30 wife with right of survivorship, one of whom is taxable at a
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1 rate lower than the other, the lower rate of tax shall be
2 applied to the entire interest.
3 * * *
4 Section 2. This act shall take effect immediately.
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