Metzgar Bill to Repeal Death Tax on Children Passes House

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HARRISBURG, Pa.  – The House of Representatives today advanced legislation, sponsored by Rep. Carl Walker Metzgar (R-Bedford/Somerset), to eliminate the inheritance tax rate for transfers of property from a parent to a child age 21 or younger. The bill now goes to the Senate for consideration.

“The inheritance tax law currently has a zero percent inheritance tax rate on property transfers from a child age 21 or younger to a natural parent, adoptive parent or step-parent. However, the law does not work in reverse,” Metzgar said. “When a property is transferred from a parent to a minor child, it is subject to an inheritance tax rate of 4.5 percent. That simply is not right and this commonsense legislation fixes that.”

House Bill 291would make it possible for a parent, adoptive parent or step-parent to, upon death, transfer property to a child, age 21 years or younger, without penalizing the child. This legislation would be particularly beneficial to farmers who often leave the family farm to their children.

“Current law makes it difficult to pass on assets that would enable the next generation to continue the family business,” said Metzgar.  “My legislation would ensure that minor children, who inherit property when a natural, adoptive or step-parent passes away, will not be further burdened by this onerous inheritance tax.

“There have even been cases in Somerset County where a minor child has had to pay an inheritance tax upon the death of a parent with whom the child was joint owner of the property. House Bill 291 would correct this by eliminating the inheritance tax for such transfers,” Metzgar said.

The House unanimously passed the same Metzgar legislation last session, but the Senate failed to act on it.

Source: Pennsylvania House of Representatives