HARRISBURG, Pa. (WHTM) – The state House of Representatives has advanced legislation that would eliminate the inheritance tax when property is transferred from a parent to a child who is 21 years old or younger.
Rep. Carl Walker Metzgar (R-Bedford/Somerset) said his proposal, House Bill 291, would be particularly beneficial to farmers who often leave the family farm to their children.
Metzgar said the inheritance tax law has a zero percent inheritance tax rate on property transfers from a child age 21 or younger to a natural parent, adoptive parent or stepparent. When a property is transferred from a parent to a minor child, however, it is subject to an inheritance tax rate of 4.5 percent.
The House unanimously passed the same legislation last year, but the Senate did not take action on it.