DEPARTMENT OF REVENUE Life Estate and Remainder Factors; Pennsylvania Realty Transfer Tax [46 Pa.B. 3035]
[Saturday, June 11, 2016]In accordance with 61 Pa. Code § 91.165(d) (relating to reservations or conveyances of life estates), the Department of Revenue (Department) is required to periodically publish notice of the Life Estate and Remainder Factors and their effective date to be used for the calculation of the taxable value of a Life Estate and Remainder Interest in real estate.
Section 91.165(d)(1) of 61 Pa. Code provides that the factors will be based upon tables published by the Internal Revenue Service (IRS) for calculating the present worth of a Life Estate and Remainder Interest. See https://www.irs.gov/retirement-plans/actuarial-tables. The IRS table of factors to be used is the table based upon an average interest rate for the 36 months prior to publication of the factors in the Pennsylvania Bulletin. The average interest rate rounded to the nearest two tenths of a percent for the 36 months prior to publication of this notice (June 2013—May 2016) is 2.0%.
Effective July 1, 2016, the Department is updating the Life Estate and Remainder Factors to account for changes in mortality and interest rates as follows:
Pennsylvania Realty Transfer Tax
Factors for Conveyances or Reservations of
Life Estate and Remainder Interests in Real EstateIRS Publication 1457
Table S (2.0)
Single Life Factors Based on Life Table 2000CM
Interest at 2.0 PercentAge Life Estate Remainder 0 0.76687 0.23313 1 0.76761 0.23239 2 0.76336 0.23664 3 0.75888 0.24112 4 0.75425 0.24575 5 0.74950 0.25050 6 0.74462 0.25538 7 0.73965 0.26035 8 0.73456 0.26544 9 0.72936 0.27064 10 0.72404 0.27596 11 0.71861 0.28139 12 0.71307 0.28693 13 0.70745 0.29255 14 0.70177 0.29823 15 0.69606 0.30394 16 0.69032 0.30968 17 0.68454 0.31546 18 0.67871 0.32129 19 0.67281 0.32719 20 0.66683 0.33317 21 0.66075 0.33925 22 0.65459 0.34541 23 0.64832 0.35168 24 0.64191 0.35809 25 0.63536 0.36464 26 0.62866 0.37134 27 0.62181 0.37819 28 0.61480 0.38520 29 0.60767 0.39233 30 0.60041 0.39959 31 0.59302 0.40698 32 0.58551 0.41449 33 0.57787 0.42213 34 0.57012 0.42988 35 0.56226 0.43774 36 0.55428 0.44572 37 0.54619 0.45381 38 0.53799 0.46201 39 0.52968 0.47032 40 0.52127 0.47873 41 0.51276 0.48724 42 0.50415 0.49585 43 0.49543 0.50457 44 0.48662 0.51338 45 0.47772 0.52228 46 0.46871 0.53129 47 0.45963 0.54037 48 0.45045 0.54955 49 0.44118 0.55882 50 0.43181 0.56819 51 0.42234 0.57766 52 0.41278 0.58722 53 0.40313 0.59687 54 0.39342 0.60658 55 0.38365 0.61635 56 0.37387 0.62613 57 0.36407 0.63593 58 0.35427 0.64573 59 0.34447 0.65553 60 0.33466 0.66534 61 0.32485 0.67515 62 0.31506 0.68494 63 0.30530 0.69470 64 0.29557 0.70443 65 0.28589 0.71411 66 0.27615 0.72385 67 0.26641 0.73359 68 0.25669 0.74331 69 0.24701 0.75299 70 0.23740 0.76260 71 0.22785 0.77215 72 0.21838 0.78162 73 0.20902 0.79098 74 0.19981 0.80019 75 0.19077 0.80923 76 0.18193 0.81807 77 0.17329 0.82671 78 0.16485 0.83515 79 0.15663 0.84337 80 0.14865 0.85135 81 0.14090 0.85910 82 0.13340 0.86660 83 0.12615 0.87385 84 0.11916 0.88084 85 0.11243 0.88757 86 0.10598 0.89402 87 0.09979 0.90021 88 0.09388 0.90612 89 0.08824 0.91176 90 0.08287 0.91713 91 0.07777 0.92223 92 0.07293 0.92707 93 0.06837 0.93163 94 0.06405 0.93595 95 0.05998 0.94002 96 0.05616 0.94384 97 0.05258 0.94742 98 0.04922 0.95078 99 0.04606 0.95394 100 0.04313 0.95687 101 0.04036 0.95964 102 0.03780 0.96220 103 0.03527 0.96473 104 0.03295 0.96705 105 0.03066 0.96934 106 0.02782 0.97218 107 0.02461 0.97539 108 0.01951 0.98049 109 0.00980 0.99020 EILEEN H. McNULTY,
Secretary[Pa.B. Doc. No. 16-995. Filed for public inspection June 10, 2016, 9:00 a.m.]
