PA House Bill (re: Transfer Tax)

Legislation that could be good news for some of us

IF my reading of this bill is correct, it would let owners transfer property from their personal names to an entity name WITHOUT having to pay transfer tax. It is in committee at the moment but I can’t imagine a lot of opposition to a bill like this.


PENNSYLVANIA HOUSE BILL No. 2336 Session of 2020

INTRODUCED BY ECKER, BURGOS, CALTAGIRONE, M. K. KELLER, ROTHMAN, SAYLOR, PICKETT, KEEFER, OWLETT, MOUL, ZIMMERMAN, RYAN AND HERSHEY, MARCH 10, 2020

REFERRED TO COMMITTEE ON FINANCE, MARCH 10, 2020

AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled “An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties,” in realty transfer tax, further providing for excluded transactions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 1102-C.3 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended by adding a clause to read: Section 1102-C.3. Excluded Transactions.–The tax imposed by section 1102-C shall not be imposed upon: * * * (26) A transfer of real estate from an individual or an individual and a spouse to an association, corporation, partnership, limited liability company, business trust or other
business entity that is wholly owned by the individual or the individual and a spouse. Section

2. This act shall take effect in 60 days.

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