THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ALLOWAY, FONTANA, ORIE, FOLMER, BREWSTER, SOLOBAY, YAW, VOGEL, ERICKSON, SCARNATI, BOSCOLA, PIPPY, MENSCH, TOMLINSON, COSTA, D. WHITE, EARLL, GREENLEAF, PICCOLA, BRUBAKER AND WAUGH, JANUARY 26, 2011

REFERRED TO FINANCE, JANUARY 26, 2011  

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 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

dying on or after January 1, 2019.

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, 2012;

at the rate of two and one-half per cent for estates of

decedents dying on or after January 1, 2012, and before January

1, 2013; and at the rate of one-half per cent for estates of

decedents dying on or after January 1, 2013, and before January

1, 2014; and at the rate of zero per cent for estates of

decedents dying after January 1, 2014:

(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,

2012; at the rate of ten per cent for estates of decedents dying

on or after January 1, 2012, and before January 1, 2013; at the

rate of eight per cent for estates of decedents dying on or

after January 1, 2013, and before January 1, 2014; at the rate

of six per cent for estates of decedents dying on or after

January 1, 2014, and before January 1, 2015; at the rate of four

per cent for estates of decedents dying on or after January 1,

2015, and before January 1, 2016; at the rate of two per cent

for estates of decedents dying on or after January 1, 2016, and

before January 1, 2017; and at the rate of zero per cent for

estates of decedents dying on or after January 1, 2017.

(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, 2012; at the rate of

thirteen percent for estates of decedents dying on or after

January 1, 2012, and before January 1, 2013, at the rate of

eleven per cent for estates of decedents dying on or after

January 1, 2013, and before January 1, 2014; at the rate of nine

per cent for estates of decedents dying on or after January 1,

2014, and before January 1, 2015; at the rate of seven per cent

for estates of decedents dying on or after January 1, 2015, and

before January 1, 2016; at the rate of five per cent for estates

of decedents dying on or after January 1, 2016, and before

January 1, 2017; at the rate of three per cent for estates of

decedents dying on or after January 1, 2017, and before January

1, 2018; at the rate of one per cent for estates of decedents

dying on or after January 1, 2018, and before January 1, 2019;

and at the rate of zero per cent for estates of decedents dying

on or after January 1, 2019.

(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, 2019, except as referenced by

section 2145.

Section 4.  This act shall take effect immediately.