NOTICES
DEPARTMENT OF REVENUE
Life Estate and Remainder Factors; Pennsylvania Realty Transfer Tax
[49 Pa.B. 3023]
[Saturday, June 8, 2019]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 2016—May 2019) is 2.6%.
Effective July 1, 2019, 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 Estate
IRS Publication 1457
Table S (2.6)
Single Life Factors Based on Life Table 2000CM
Interest at 2.6 Percent
Age Life Estate Remainder 0 0.84352 0.15648 1 0.84542 0.15458 2 0.84183 0.15817 3 0.83800 0.16200 4 0.83400 0.16600 5 0.82987 0.17013 6 0.82560 0.17440 7 0.82121 0.17879 8 0.81670 0.18330 9 0.81205 0.18795 10 0.80727 0.19273 11 0.80236 0.19764 12 0.79732 0.20268 13 0.79218 0.20782 14 0.78697 0.21303 15 0.78171 0.21829 16 0.77642 0.22358 17 0.77107 0.22893 18 0.76566 0.23434 19 0.76017 0.23983 20 0.75457 0.24543 21 0.74886 0.25114 22 0.74303 0.25697 23 0.73707 0.26293 24 0.73096 0.26904 25 0.72466 0.27534 26 0.71818 0.28182 27 0.71151 0.28849 28 0.70465 0.29535 29 0.69763 0.30237 30 0.69044 0.30956 31 0.68309 0.31691 32 0.67558 0.32442 33 0.66789 0.33211 34 0.66007 0.33993 35 0.65208 0.34792 36 0.64394 0.35606 37 0.63565 0.36435 38 0.62719 0.37281 39 0.61859 0.38141 40 0.60984 0.39016 41 0.60094 0.39906 42 0.59191 0.40809 43 0.58271 0.41729 44 0.57337 0.42663 45 0.56389 0.43611 46 0.55426 0.44574 47 0.54450 0.45550 48 0.53460 0.46540 49 0.52455 0.47545 50 0.51434 0.48566 51 0.50398 0.49602 52 0.49347 0.50653 53 0.48282 0.51718 54 0.47204 0.52796 55 0.46116 0.53884 56 0.45022 0.54978 57 0.43922 0.56078 58 0.42818 0.57182 59 0.41710 0.58290 60 0.40595 0.59405 61 0.39476 0.60524 62 0.38355 0.61645 63 0.37234 0.62766 64 0.36113 0.63887 65 0.34991 0.65009 66 0.33860 0.66140 67 0.32723 0.67277 68 0.31584 0.68416 69 0.30447 0.69553 70 0.29312 0.70688 71 0.28181 0.71819 72 0.27055 0.72945 73 0.25939 0.74061 74 0.24836 0.75164 75 0.23751 0.76249 76 0.22686 0.77314 77 0.21642 0.78358 78 0.20620 0.79380 79 0.19622 0.80378 80 0.18649 0.81351 81 0.17702 0.82298 82 0.16783 0.83217 83 0.15893 0.84107 84 0.15032 0.84968 85 0.14202 0.85798 86 0.13403 0.86597 87 0.12637 0.87363 88 0.11901 0.88099 89 0.11199 0.88801 90 0.10529 0.89471 91 0.09891 0.90109 92 0.09286 0.90714 93 0.08713 0.91287 94 0.08170 0.91830 95 0.07658 0.92342 96 0.07176 0.92824 97 0.06724 0.93276 98 0.06299 0.93701 99 0.05899 0.94101 100 0.05527 0.94473 101 0.05176 0.94824 102 0.04851 0.95149 103 0.04530 0.95470 104 0.04234 0.95766 105 0.03943 0.96057 106 0.03580 0.96420 107 0.03171 0.96829 108 0.02518 0.97482 109 0.01267 0.98733 C. DANIEL HASSELL,
Secretary
[Pa.B. Doc. No. 19-874. Filed for public inspection June 7, 2019, 9:00 a.m.]
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