[Note: The recent history of the Pennsylvania Inheritance and Estate Tax Act ("IETA") is rather confusing. The present inheritance tax is similar to the Act of June 15, 1961 (P.L. 373, No. 207), which was repealed and replaced in 1982, when the IETA became part of the Pennsylvania Consolidated Statutes, Chapter 17 of Title 72. However, the IETA was unconsolidated in 1991, by Act 22 of 1991 (August 4, 1991). Act 22 repealed Chapter 17 of Title 72, renumbered all of the sections of the Act, and re-enacted the Act as part of the Tax Reform Code of 1971, an unconsolidated statute. By Act of June 16, 1994 (P.L. 279, No. 48), the IETA was amended to reduce (and eventually eliminate) the tax on inter-spousal transfers. Some of the 1994 changes were effective July 1, 1994, but some changes, such as the elimination of the tax on inter-spousal transfers, would not be effective until 1998. By the Act of June 30, 1995, P.L. 139, No. 21, the inheritance tax provisions of the 1994 act were amended to accelerate the elimination of the tax on inter-spousal transfers retroactive to the beginning of 1995. Unless otherwise noted, all of the provisions shown below are as enacted by the Act of August 4, 1991, P.L. 97, No. 22, effective for decedents dying on or after October 3, 1991, including all amendments up to and including the Act 52 of 2013.]

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The Inheritance and Estate Tax Act

(Article XXI of the Tax Reform Code of 1971, Act of March 4, 1971, P.L. 6, No. 2, added by Act of Aug. 4, 1991, P.L. 97, No. 22, as amended.)

PART I - PRELIMINARY PROVISIONS

• Section 2101. Short Title.

• Section 2102. Definitions.

• Section 2103. Powers of Department.

PART II - TRANSFERS SUBJECT TO TAX

• Section 2106. Imposition of Tax.

• Section 2107. Transfers Subject to Tax.

• Section 2108. Joint Tenancy.

PART III - TRANSFERS NOT SUBJECT TO TAX

• Section 2111. Transfers Not Subject to Tax.

• Section 2112. Exemption for Poverty.

• Section 2113. Trusts and Similar Arrangements for Spouses.

PART IV - RATE OF TAX

• Section 2116. Inheritance Tax.

• Section 2117. Estate Tax.

PART V - VALUATION

• Section 2121. Valuation.

• Section 2122. Valuation of Certain Farmland.

PART VI - DEDUCTIONS

• Section 2126. Deductions Generally.

• Section 2127. Expenses.

• Section 2128. Taxes.

• Section 2129. Liabilities.

• Section 2130. Deductions Not Allowed.

PART VII - PAYMENT OF TAX

• Section 2136. Returns.

• Section 2137. Appraisement.

• Section 2138. Deductions.

• Section 2139. Assessment of Tax.

• Section 2140. Notice.

• Section 2141. Failure to File Returns Not a Bar to Assessment of Tax.

• Section 2142. Payment Date and Discount.

• Section 2143. Interest.

• Section 2144. Source of Payment.

• Section 2145. Estate Tax.

• Section 2146. Deduction and Collection of Tax by Personal Representative or Other Fiduciary.

• Section 2147. Duties of Depositories.

• Section 2148. Compromise by Department.

• Section 2149. Interstate Compromise and Arbitration of Inheritance Taxes.

• Section 2150. Extension of Time for Payment.

• Section 2151. Bond for Delinquent Tax.

• Section 2152. Evidence of Payment of Tax for Real Estate in Another County.

• Section 2153. Penalties.

• Section 2154. Payment of Tax for Small Business Transfers.

PART VIII - UNIFORM ACT ON INTERSTATE COMPROMISE AND ARBITRATION OF INHERITANCE TAXES

• Section 2156. Short Title.

• Section 2157. Compromise Agreement and Filing. Interest or Penalty for Nonpayment of Taxes.

• Section 2158. Arbitration Agreement.

• Section 2159. Arbitration Board.

• Section 2160. Filing of Determination of Domicile and Other Documents.

• Section 2161. Interest or Penalties for Nonpayment of Taxes.

• Section 2162. Compromise by Parties to Arbitration Agreement.

• Section 2163. Reciprocal Application.

PART IX - COLLECTION OF TAX

• Section 2166. Timely Mailing Treated as Timely Filing and Payment.

• Section 2167. Lien and Duration of Lien.

• Section 2168. Limited and Future Interests.

• Section 2169. Purchaser, Mortgagee or Lessee.

• Section 2170. Sale by Fiduciary.

• Section 2171. Sale by Heir, Devisee or Fiduciary.

• Section 2172. Sale of Property Transferred Inter Vivos.

• Section 2173. Subordination of Lien.

• Section 2174. Cessation Upon Approval of Bond.

• Section 2175. Release of Lien.

• Section 2176. Enforcement Procedure.

PART X - REFUND OF TAX

• Section 2181. Refund of Tax.

PART XI - DISPUTED TAX

• Section 2186. Protest, Notice and Appeal.

• Section 2187. Bond.

• Section 2188. Appeal and Removal from Department.

PART XII - ENTRY INTO SAFE DEPOSIT BOX

• Section 2191. Entry Prohibited.

• Section 2192. Entry Without Notice to Department.

• Section 2193. Entry Upon Notice to Department.

• Section 2194. Subsequent Entries.

• Section 2195. Confidential Nature of Contents.

• Section 2196. Penalties.

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Philadelphia, PA 19118
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