Pennsylvania HB 796: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in inheritance tax, further providing for inheritance tax.

Bill Text

PRINTER'S NO. 820
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 796
Session of
2025
INTRODUCED BY M. MACKENZIE, BERNSTINE, PICKETT, GLEIM, STAATS,
ZIMMERMAN, KAUFFMAN AND GILLEN, MARCH 3, 2025
REFERRED TO COMMITTEE ON FINANCE, MARCH 3, 2025
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 inheritance tax, further providing for
inheritance tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2116(a)(1) and (1.3) of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
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:] imposed under section 302 on each dollar of income that
is received by every resident individual, estate or trust and on
each dollar of income that is received by every nonresident
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individual, estate or trust, not to exceed three and seven
hundredths 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.
* * *
(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.] imposed under section 302 on each dollar of income
that is received by every resident individual, estate or trust
and on each dollar of income that is received by every
nonresident individual, estate or trust, not to exceed three and
seven hundredths per cent.
* * *
Section 2. The amendment of section 2116(a)(1) and (1.3) of
the act shall apply to estates of decedents dying after June 30,
2025.
Section 3. This act shall take effect immediately.
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