Bill > HB1203

This bill amends the Tax Reform Code of 1971 to modify the realty transfer tax provisions for excluded transactions, specifically clarifying and restructuring the types of property transfers that are exempt from the tax. The bill maintains existing exemptions for transfers between family members, including transfers between husband and wife, divorced spouses, parents and children, stepparents and stepchildren, siblings, grandparents and grandchildren, and their respective spouses. The key change is the reorganization of these exemptions into a more structured format with subclauses, making the language more explicit about the relationships covered. The bill also introduces a provision that if the recipient of a tax-exempt transfer sells the property within one year, the transfer will be subject to tax as if the original owner had made the sale. The amendments will apply to transactions occurring after December 31, 2025, and the bill will take effect 60 days after its enactment. This modification aims to provide greater clarity and prevent potential misuse of the realty transfer tax exemptions while maintaining the existing protections for family-related property transfers.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1203