An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, further providing for excluded transactions.
Summary
HB357 amends Pennsylvania’s Tax Reform Code to create a new realty transfer tax exclusion for certain transfers of real estate to the surviving spouse or minor child of a person covered by the Emergency and Law Enforcement Personnel Death Benefits Act. The exclusion applies when the covered individual died in the line of duty as a result of performing official duties.
To qualify, the property must meet specific residence and timing conditions. In general, the real estate must have been the principal residence of the covered individual and, depending on the beneficiary, also the principal residence of the surviving spouse or minor child, or meet a narrower rule for a surviving spouse who married the decedent within one year before death. The transfer must occur within five years of the covered individual’s death. The bill takes effect 60 days after enactment.
Impact
The bill would amend Section 1102-C.3 of the Tax Reform Code of 1971 by adding a new excluded transaction from Pennsylvania’s realty transfer tax. Its practical effect is to eliminate transfer tax liability for qualifying post-death transfers of a home to certain family members of fallen emergency or law enforcement personnel, reducing the cost of retaining or transferring the family residence. The change would affect surviving spouses and minor children who inherit or receive title to the property under the bill’s conditions, as well as county and state tax collection tied to real estate transfers.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed as a targeted tax relief measure for families of public safety personnel who die in the line of duty. The sponsorship by a broad group of House members suggests likely bipartisan or cross-caucus support for the underlying policy goal of honoring fallen responders and easing financial burdens on their families. No contrary sentiment is documented in the available record.
Contention
The main policy questions raised by the bill’s structure are the scope and eligibility limits of the exclusion. The bill narrows relief to transfers within five years of death and to specific residence scenarios, which could exclude some surviving spouses or children whose living arrangements do not fit the statutory criteria. Another possible point of contention is whether the exemption should be limited to emergency and law enforcement personnel covered by the Death Benefits Act, rather than extended to other public servants or line-of-duty deaths more broadly. No explicit opposition or debate is included in the provided materials.