Bill Text: PA SB546 | 2011-2012 | Regular Session | Introduced

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Bill Title: In personal income tax, further providing for taxability of estates, trusts and their beneficiaries.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-02-14 - Referred to FINANCE [SB546 Detail]

Download: Pennsylvania-2011-SB546-Introduced.html

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PRINTER'S NO. 528
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 546 Session of2011
INTRODUCED BY BREWSTER, ERICKSON, EARLL, FONTANA, RAFFERTY, TARTAGLIONE, STACK, KASUNIC, M. WHITE, COSTA, EICHELBERGER, FERLO, BOSCOLA, WASHINGTON AND BROWNE, FEBRUARY 14, 2011
REFERRED TO FINANCE, FEBRUARY 14, 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," in personal income tax, further providing for
taxability of estates, trusts and their beneficiaries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 305 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, added August 31,
1971 (P.L.362, No.93), is amended to read:
Section 305. Taxability of Estates, Trusts and Their
Beneficiaries.--(a) Except as set forth in subsection (b), the
following apply:
(1) The income of a beneficiary of an estate or trust in
respect of such estate or trust shall consist of that part of
the income or gains received by the estate or trust for its
taxable year ending within or with the beneficiary's taxable
year which, under the governing instrument and applicable State
law, is required to be distributed currently or is in fact paid
or credited to said beneficiary.
(2) The income or gains of the estate or trust, if any,
taxable to such estate or trust shall consist of the income or
gains received by it which has not been distributed or credited
to its beneficiaries.
(b) The first three thousand dollars ($3,000) of income from
a qualified disability trust shall not be income or gains under
subsection (a).
(c) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
"Disabled." As defined in section 1614(a)(3) of the Social
Security Act (49 Stat. 620, 42 U.S.C. § 1382c(a)(3)).
"Qualified disability trust." A trust described in section
1917(c)(2)(B)(iv) of the Social Security Act (49 Stat. 620, 42
U.S.C. § 1396p(c)(2)(B)(iv)) which complies with all of the
following:
(1) The trust is established solely for the benefit of
individuals who are:
(i) under 65 years of age; and
(ii) disabled.
(2) All of the beneficiaries of the trust are determined by
the Commissioner of Social Security to have been disabled for
some part of the tax year. A trust shall not fail to comply with
this clause solely because the body of the trust may, after the
trust ceases to have any disabled beneficiary, revert to a
person that is not disabled.
Section 2. The amendment of section 305 of the act shall
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apply to taxable years beginning after December 31, 2011.
Section 3. This act shall take effect in 60 days.
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