HARRISBURG – State Senator Gene Yaw (R-23) today co-sponsored legislation that would completely phase out the Pennsylvania Inheritance Tax, also known as the ‘death tax.’
Senate Bill 61, sponsored by Senator Kim Ward (R-39), would seek to reduce the current tax rate from 4.5 percent for direct descendents (children) to 2 percent in 2014, with a complete phase out by 2015.
The legislation would also reduce the current 12 percent tax for siblings by 3 percent a year until 2017, when it would be completely phased out. Lastly, the current 15 percent tax rate for all other heirs would be reduced by 3 percent a year until 2019, when it would be completely phased out.
“Pennsylvania remains one of 13 states that still impose a death tax,” Yaw said. “Not only is this archaic tax a burden on estates, but also on small businesses. It’s time that we completely eliminate it once and for all.”
Senate Bill 61 has been referred to the Senate Finance Committee for consideration.
Contact: Rita Zielonis