A Democratic-backed proposal in the Pennsylvania House would change the rules for inheritance taxes. Under the provision not just married couples and young children would be exempt from paying the tax, but all domestic partner couples would receive the protection.
"My married neighbors don't have to pay this inheritance tax. In their case, the state rightfully acknowledges the unfair burden that would be placed on the survivor. My situation would be no different," said David Jacobs, who lives with his partner of 17 years in Philadelphia.
Under current law, if someone is married, and his or her spouse dies, any inherited property is not taxed at the state's usual 15% rate. The same applies if a child under 21 inherits property from a deceased parent.
State Representative Babette Josephs (D-Philadelphia) wants the same rules to apply to domestic partners that she describes as people who aren't married, either because they can't, or won't. The bill would set up stringent requirements to prove a survivor qualifies as a deceased's domestic partner.
"They might not have any of this: joint liability in a mortgage lease or loan, primary beneficiary under life insurance, a primary beneficiary under the will, a durable power of attorney — I mean, most couples don't have any of that," said Josephs. "You have to show documents. You have to prove commitment."
Jacobs said the state sets up a double standard for people like himself who are not married but have purchased a house together.
"If one of us was unwilling or unable to pay the mortgage, the other would be 100% liable for the debt and the taxes. In other words, the law recognizes us both as 100% owners. But in death, the state changes its mind," said Jacobs.
The bill was referred to committee last September but has not been called for a vote.
