On July 2, 2012, Pennsylvania Governor Tom Corbett signed into law legislation exempting children and siblings of working farm owners from state inheritance tax. As a result, effective retroactively to June 30, 2012, when inheriting a working farm, children will no longer pay a 4.5% inheritance tax and siblings will no longer pay a 12% inheritance tax. However, for the children or siblings to receive the tax break, the inherited property must remain a working farm for at least seven years after the transferor’s date of death.
To read the legislation in its entirety, please click the link below:
Section 23 of House Bill 761
Written by M. Sean High, Research Assistant
Penn State Law, Agricultural Law Center