HARRISBURG, Pa. — Senate Majority Leader Dominic Pileggi (R-9) and Senate Agriculture and Rural Affairs Committee Chairman Elder Vogel (R-47) announced July 9 that Governor Tom Corbett has signed a new law exempting family farms from the inheritance tax and the realty transfer tax.
“This legislation is about furthering opportunity in Pennsylvania for our young farmers, an opportunity to stay in the business of agriculture. The costs, challenges and regulation of the agriculture industry have already resulted in our youth not returning to the farm,” said Senator Vogel, a fourth-generation dairy farmer. “Eliminating this costly tax burden on farm families provides a great incentive for them to continue farming for generations.”
The new law excludes family farms from the inheritance tax if a farm is transferred to members of the same family. It also clarifies that the realty transfer tax does not apply to the transfer of a family farm to members of the same family.
The change was strongly supported by the Pennsylvania Farm Bureau and the Pennsylvania State Grange.
“Senator Vogel’s and Senator Pileggi’s leadership on advancing the inheritance tax exemption for Pennsylvania’s farm families is greatly appreciated by Pennsylvania Farm Bureau. This is a landmark achievement and will go far in helping to preserve the future of production agriculture as a leading generator of economic activity in the state,” said Carl T. Shaffer, president of the Pennsylvania Farm Bureau.
These initiatives were first advanced earlier this session in Senator Pileggi’s Senate Bill 746. House Bill 761, which was amended by the Senate to include the family farm provisions, was signed into law by Governor Corbett July 8.
Senator Pileggi and Senator Vogel shepherded HB 761 through the Senate and strongly advocated for its passage.