PRINTER'S NO. 1439
No. 1165 Session of 1999
INTRODUCED BY CONTI, TILGHMAN, WOZNIAK, GERLACH, CORMAN,
SALVATORE, COSTA, PUNT, MURPHY, DENT, LAVALLE, WAGNER, EARLL,
KASUNIC, GREENLEAF, STOUT, BOSCOLA AND ARMSTRONG,
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 imposition of tax and for
11 the rate of inheritance tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2106 of act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, added August 4,
16 1991 (P.L.97, No.22), is amended to read:
17 Section 2106. Imposition of Tax.--An inheritance tax for the
18 use of the Commonwealth is imposed upon [every transfer]
19 transfers subject to tax under this article at the [rates] rate
20 specified in section 2116 provided that the sum of all such
21 transfers exceed one million dollars ($1,000,000) and that the
1 tax is imposed only to the extent of the transfers in excess of
2 one million dollars ($1,000,000).
3 Section 2. Section 2116(a) of the act, amended June 16, 1994
4 (P.L.279, No.48) and June 30, 1995 (P.L.139, No.21), is amended
5 to read:
6 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
7 upon the transfer of property passing to or for the use of any
8 of the following shall be at the rate of [six] five per cent:
9 (i) grandfather, grandmother, father, mother and lineal
10 descendants; or
11 (ii) wife or widow and husband or widower of a child.
12 (1.1) Inheritance tax upon the transfer of property passing
13 to or for the use of a husband or wife shall be:
14 (i) At the rate of three per cent for estates of decedents
15 dying on or after July 1, 1994, and before January 1, 1995.
16 (ii) At a rate of zero per cent for estates of decedents
17 dying on or after January 1, 1995.
18 (2) Inheritance tax upon the transfer of property passing to
19 or for the use of all persons other than those designated in
20 subclause (1) or (1.1) or exempt under section 2111(m) shall be
21 at the rate of [fifteen] five per cent.
22 (3) When property passes to or for the use of a husband and
23 wife with right of survivorship, one of whom is taxable at a
24 rate lower than the other, the lower rate of tax shall be
25 applied to the entire interest.
26 * * *
27 Section 3. The amendment of section 2116(a) of the act shall
28 apply to the estate of decedents dying on or after January 1,
29 2001, and to inter vivos transfers made by decedents dying on or
30 after January 1, 2001, without regard to the date of the
19990S1165B1439 - 2 -
1 transfer.
2 Section 4. This act shall take effect in 60 days.
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