Inheritance Taxes on Same-Sex Couples Challenged in Pennsylvania

Twowomen are challenging a Pennsylvania policy to not cover same-sex couples underthe inheritance tax waiver.

Pennsylvaniadoes not impose an inheritance tax for transfers to surviving spouses.  Pennsylvania’s inheritance tax rate is 4.5%on transfers to direct descendants, 12% on transfers to siblings, and 15% forall others.

BarbaraAlma Baus married Catherine Burgi-Rios in Connecticut in 2011.  Baus believes she should not have to pay the15% levy on Burgi-Rois’ estate, which amounts to a $11,000 tax bill.  She says “Pennsylvania is essentiallynullifying the marriage and taxing [her] as though she didn’t even know herspouse or have a financial relationship with her.” 

In aseparate case, Nancy Dixon is seeking to overturn a $21,000 tax bill on herpartner’s estate.  Dixon and her partnerwere together since 1981 but never married in a state permitting same-sexunions. 

See Mark Scolforo, Death Taxes Become Pa. Gay Marriage BattleFront, Centre Daily Times, Oct. 28, 2013.