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.

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
 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," in inheritance tax, further providing for
11      inheritance tax.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 2116(a)(1) and (1.3) of the act of March
15   4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
16   amended to read:
17      Section 2116.    Inheritance Tax.--(a)   (1)   Inheritance tax
18   upon the transfer of property passing to or for the use of any
19   of the following shall be at the rate [of four and one-half per
20   cent:] imposed under section 302 on each dollar of income that
21   is received by every resident individual, estate or trust and on
22   each dollar of income that is received by every nonresident
 1   individual, estate or trust, not to exceed three and seven
 2   hundredths per cent:
 3      (i)    grandfather, grandmother, father, mother, except
 4   transfers under subclause (1.2), and lineal descendants; or
 5      (ii)    wife or widow and husband or widower of a child.
 6      * * *
 7      (1.3)    Inheritance tax upon the transfer of property passing
 8   to or for the use of a sibling shall be at the rate [of twelve
 9   per cent.] imposed under section 302 on each dollar of income
10   that is received by every resident individual, estate or trust
11   and on each dollar of income that is received by every
12   nonresident individual, estate or trust, not to exceed three and
13   seven hundredths per cent.
14      * * *
15      Section 2.    The amendment of section 2116(a)(1) and (1.3) of
16   the act shall apply to estates of decedents dying after June 30,
17   2025.
18      Section 3.    This act shall take effect immediately.




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