PRINTER'S NO. 1434
No. 1159 Session of 1999
INTRODUCED BY CORMAN, TILGHMAN, WOZNIAK, SALVATORE, COSTA,
CONTI, O'PAKE, EARLL, WAGNER, GERLACH, KASUNIC, HELFRICK,
LAVALLE, MOWERY, BOSCOLA, MURPHY, RHOADES, SLOCUM, WAUGH,
WHITE AND STOUT, OCTOBER 25, 1999
REFERRED TO FINANCE, OCTOBER 25, 1999
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
15 June 16, 1994 (P.L.279, No.48) and June 30, 1995 (P.L.139,
16 No.21), is amended to read:
17 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
18 upon the transfer of property passing to or for the use of any
19 of the following shall be at the rate of [six] five and one-half
20 per cent for estates of decedents dying after December 31, 1999,
21 and before January 1, 2001; five per cent for estates of
1 decedents dying after December 31, 2000, and before January 1,
2 2002; four and one-half per cent for estates of decedents dying
3 after December 31, 2001, and before January 1, 2003; four per
4 cent for estates of decedents dying after December 31, 2002, and
5 before January 1, 2004; three and one-half per cent for estates
6 of decedents dying after December 31, 2003, and before January
7 1, 2005; three per cent for estates of decedents dying after
8 December 31, 2004, and before January 1, 2006; two and one-half
9 per cent for estates of decedents dying after December 31, 2005,
10 and before January 1, 2007; two per cent for estates of
11 decedents dying after December 31, 2006, and before January 1,
12 2008; one per cent for estates of decedents dying after December
13 31, 2007, and before January 1, 2009; and zero per cent for
14 estates of decedents dying after December 31, 2008:
15 (i) grandfather, grandmother, father, mother and lineal
16 descendants; or
17 (ii) wife or widow and husband or widower of a child.
18 (1.1) Inheritance tax upon the transfer of property passing
19 to or for the use of a husband or wife shall be:
20 (i) At the rate of three per cent for estates of decedents
21 dying on or after July 1, 1994, and before January 1, 1995.
22 (ii) At a rate of zero per cent for estates of decedents
23 dying on or after January 1, 1995.
24 (2) Inheritance tax upon the transfer of property passing to
25 or for the use of all persons other than those designated in
26 subclause (1) or (1.1) or exempt under section 2111(m) shall be
27 at the rate of [fifteen] fourteen per cent for estates of
28 decedents dying after December 31, 1999, and before January 1,
29 2001; thirteen per cent for estates of decedents dying after
30 December 31, 2000, and before January 1, 2002; twelve per cent
19990S1159B1434 - 2 -
1 for estates of decedents dying after December 31, 2001, and
2 before January 1, 2003; eleven per cent for estates of decedents
3 dying after December 31, 2002, and before January 1, 2004; ten
4 per cent for estates of decedents dying after December 31, 2003,
5 and before January 1, 2005; eight per cent for estates of
6 decedents dying after December 31, 2004, and before January 1,
7 2006; six per cent for estates of decedents dying after December
8 31, 2005, and before January 1, 2007; four per cent for estates
9 of decedents dying after December 31, 2006, and before January
10 1, 2008; two per cent for estates of decedents dying after
11 December 31, 2007, and before January 1, 2009; and zero per cent
12 for estates of decedents dying after December 31, 2008.
13 (3) When property passes to or for the use of a husband and
14 wife with right of survivorship, one of whom is taxable at a
15 rate lower than the other, the lower rate of tax shall be
16 applied to the entire interest.
17 * * *
18 Section 2. This act shall take effect immediately.
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