PRINTER'S NO. 2303
No. 1593 Session of 2000
INTRODUCED BY COSTA, WAUGH, HUGHES, O'PAKE, TARTAGLIONE, BELAN,
BOSCOLA, EARLL, STAPLETON, KUKOVICH AND STOUT,
NOVEMBER 17, 2000
REFERRED TO FINANCE, NOVEMBER 17, 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.
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 per
19 cent:
20 (i) grandfather, grandmother, father, mother, except
21 transfers under subclause (1.2), and lineal descendants except
1 as provided in subclause (1.4); or
2 (ii) wife or widow and husband or widower of a child.
3 (1.1) Inheritance tax upon the transfer of property passing
4 to or for the use of a husband or wife shall be:
5 (i) At the rate of three per cent for estates of decedents
6 dying on or after July 1, 1994, and before January 1, 1995.
7 (ii) At a rate of zero per cent for estates of decedents
8 dying on or after January 1, 1995.
9 (1.2) Inheritance tax upon the transfer of property from a
10 child twenty-one years of age or younger to or for the use of a
11 natural parent, an adoptive parent or a stepparent of the child
12 shall be at the rate of zero per cent.
13 (1.3) Inheritance tax upon the transfer of property passing
14 to or for the use of a sibling shall be at the rate of twelve
15 per cent.
16 (1.4) Inheritance tax upon the transfer of property from a
17 natural parent, an adoptive parent or a stepparent of a child
18 twenty-one years of age or younger to or for the use of the
19 child twenty-one years of age or younger shall be at the rate of
20 zero per cent.
21 (2) Inheritance tax upon the transfer of property passing to
22 or for the use of all persons other than those designated in
23 subclause (1), (1.1), (1.2) [or], (1.3) or (1.4) or exempt under
24 section 2111(m) shall be at the rate of fifteen per cent.
25 (3) When property passes to or for the use of a husband and
26 wife with right of survivorship, one of whom is taxable at a
27 rate lower than the other, the lower rate of tax shall be
28 applied to the entire interest.
29 * * *
30 Section 2. This act shall apply to decedents dying after
20000S1593B2303 - 2 -
1 December 31, 2000.
2 Section 3. This act shall take effect immediately.
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