Bill Text: PA HB358 | 2011-2012 | Regular Session | Introduced

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Bill Title: Phasing out inheritance and estate tax provisions.

Spectrum: Moderate Partisan Bill (Republican 45-9)

Status: (Introduced - Dead) 2011-02-01 - Referred to FINANCE [HB358 Detail]

Download: Pennsylvania-2011-HB358-Introduced.html

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PRINTER'S NO. 323
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 358 Session of2011
INTRODUCED BY SWANGER, AUMENT, BARRAR, BEAR, BOYD, D. COSTA, DeLUCA, DENLINGER, ELLIS, FLECK, GABLER, GEIST, GILLEN, GINGRICH, GODSHALL, GOODMAN, GRELL, GROVE, HAHN, HARRIS, HESS, HICKERNELL, HORNAMAN, HUTCHINSON, KAUFFMAN, M.K. KELLER, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, METCALFE, MICOZZIE, MILLARD, MOUL, MURT, MUSTIO, O'NEILL, PEIFER, PETRARCA, RAPP, READSHAW, REICHLEY, SCAVELLO, K. SMITH, STERN, STEVENSON, TALLMAN, VULAKOVICH, WATSON AND YOUNGBLOOD, FEBRUARY 1, 2011
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 1, 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," phasing out inheritance and estate tax
provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 2104. Expiration.--The provisions of this article
shall not apply to the estates of decedents dying on or after
January 1, 2014.
Section 2. Section 2106 of the act, 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, 2015.
Section 3. 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:
(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.] a
grandfather, grandmother, father, mother, except transfers under
subclause (1.2), lineal descendants, wife or widow and husband
or widower of a child shall be at the rate provided in the
following schedule:
(i) Four and one-half per cent for the estate of a decedent
dying before or during calendar year 2013.
(ii) Two per cent for the estate of a decedent dying during
calendar year 2014.
(iii) Zero per cent for the estate of a decedent dying
during or after calendar year 2015.
(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
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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.] provided in the following schedule:
(i) Twelve per cent for the estate of a decedent dying
before or during calendar year 2010.
(ii) Nine per cent for the estate of a decedent dying during
calendar year 2011.
(iii) Six per cent for the estate of a decedent dying during
calendar year 2012.
(iv) Four and one-half per cent for the estate of a decedent
dying during calendar year 2013.
(v) Two per cent for the estate of a decedent dying during
calendar year 2014.
(vi) Zero per cent for the estate of a decedent dying during
or after calendar year 2015.
(1.4) Inheritance tax upon the transfer of property that is
jointly held between a child and a natural parent, an adoptive
parent or a stepparent of the child to the natural parent,
adoptive parent or the stepparent shall be at the rate of zero
per cent.
(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
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2111(m) shall be at the rate [of fifteen per cent.] provided in
the following schedule:
(i) Fifteen per cent for the estate of a decedent dying
before or during calendar year 2010.
(ii) Ten per cent for the estate of a decedent dying during
calendar year 2011.
(iii) Seven per cent for the estate of a decedent dying
during calendar year 2012.
(iv) Four and one-half per cent for the estate of a decedent
dying during calendar year 2013.
(v) Two per cent for the estate of a decedent dying during
calendar year 2014.
(vi) Zero per cent for the estate of a decedent dying during
or after calendar year 2015.
(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 4. Section 2117 of the act is amended by adding a
subsection to read:
Section 2117. Estate Tax.--* * *
(d) This section shall not apply to the estates of decedents
dying on or after January 1, 2015.
Section 5. This act shall take effect immediately.
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