PRINTER'S NO. 1541
No. 1245 Session of 1989
INTRODUCED BY REGOLI, ROSS, PECORA, O'PAKE, REIBMAN, STAPLETON,
STOUT, AFFLERBACH, BELAN, MUSTO, HELFRICK, PORTERFIELD,
MELLOW, WENGER, SALVATORE AND ANDREZESKI, SEPTEMBER 26, 1989
REFERRED TO FINANCE, SEPTEMBER 26, 1989
AN ACT
1 Amending Title 72 (Taxation and Fiscal Affairs) of the
2 Pennsylvania Consolidated Statutes, exempting spousal
3 transfers from inheritance taxation; and making technical
4 changes.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections 1708(b), 1711(m), 1716(a)(1) and (2) and
8 (e) and 1730(1) and (2) of Title 72 of the Pennsylvania
9 Consolidated Statutes are amended to read:
10 § 1708. Joint tenancy.
11 * * *
12 (b) Husband and wife.--[Except as provided in subsection
13 (c), this] This section shall not apply to property and
14 interests in property passing by right of survivorship to the
15 survivor of husband and wife.
16 * * *
17 § 1711. Transfers not subject to tax.
18 * * *
1 (m) Husband and wife.--Transfers of property to or for the
2 use of a husband or wife of the decedent are exempt from
3 inheritance tax. Property owned by husband and wife with right
4 of survivorship is exempt from inheritance tax. [If the
5 ownership was created within the meaning of section 1707(c)(3)
6 the entire interest transferred shall be subject to tax under
7 section 1707(c)(3) as though a part of the estate of the spouse
8 who created the co-ownership.]
9 * * *
10 § 1716. Inheritance tax.
11 (a) Rate of tax.--
12 (1) Inheritance tax upon the transfer of property
13 passing to or for the use of any of the following shall be at
14 the rate of 6%:
15 (i) Grandfather, grandmother, father, mother[,
16 husband, wife] and lineal descendants.
17 (ii) Wife or widow and husband or widower of a
18 child.
19 (2) Inheritance tax upon the transfer of property
20 passing to or for the use of all persons other than those
21 designated in paragraph (1) or exempt under section 1711(m)
22 (relating to transfers not subject to tax) shall be at the
23 rate of 15%.
24 * * *
25 (e) Compromise as to rate of future interests.--If the rate
26 of tax which will be applicable when [a future] an interest
27 vests in possession and enjoyment cannot be established with
28 certainty, the department, after consideration of relevant
29 actuarial factors, valuations and other pertinent circumstances,
30 may enter into an agreement with the person responsible for
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1 payment to establish a specified amount of tax which, when paid
2 within 60 days after the agreement, shall constitute full
3 payment of all tax otherwise due upon such transfer. Rights of
4 withdrawal of a surviving spouse not exercised within nine
5 months of the transferor's death shall be ignored in making such
6 calculations.
7 * * *
8 § 1730. Deductions not allowed.
9 The following are not deductible:
10 [(1) The value of assets claimed for the spouse's
11 allowance under 20 Pa.C.S. § 2102 (relating to share of
12 surviving spouse).]
13 (2) Claims of a former [or surviving] spouse, or others,
14 under an agreement between the former [or surviving] spouse
15 and the decedent, insofar as they arise in consideration of a
16 relinquishment or promised relinquishment of marital or
17 support rights.
18 * * *
19 Section 2. This act shall apply to the estates of all
20 decedents dying on or after the effective date of this act.
21 Section 3. This act shall take effect July 1, 1990, or
22 immediately, whichever is later.
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