Section 9154 - Payment of tax for small business transfers(a) Notwithstanding the provisions of section 2142 , the inheritance tax due under this article on the transfer of a small business interest may be paid by the qualified transferee in consecutive quarterly installments beginning immediately following the expiration of nine months after the decedent's death. The tax may be paid in twenty consecutive quarterly installments.(b) The tax shall be paid in consecutive quarterly installments due on March 31, June 30, September 30 and December 31 of each year, provided the return required by section 2136 is timely filed, along with a notice of election executed by the qualified transferee and joined in by the personal representative which shall relieve the personal representative or other fiduciary of liability for the collection and payment of tax under section 2146. The notice of election shall be completed on a form prescribed by the department containing at least the following information: (1) The name of the decedent and date of death.(2) The name or names of the personal representative or other fiduciary.(3) The name or names of the qualified transferees filing the election.(4) A description and estimated valuation of the business interest on which tax is due.(5) A statement that the qualified transferees assume full personal responsibility for the tax. Each notice of election shall be affirmed before an officer empowered to administer oaths. The installment payment of tax shall bear interest at the rate of nine per cent per annum.(c) In the event any portion of a small business interest on which the installment payment of tax has been elected is sold, exchanged or otherwise disposed of prior to the expiration of five years following the date of death and that portion equals or exceeds fifty per cent of the total value of the small business interest received by the qualified transferee, the transferee shall immediately provide written notice of the sale, exchange or disposition to the department, and the full amount of the tax then outstanding on that portion shall become due and payable at the expiration of sixty days following the date of sale, exchange or other disposition.(d) For purposes of this section, the term "small business interest" means an interest in an operating trade or business entity the principal purpose of which is not the management of investments or income producing assets owned by the entity which has employed an average of less than fifty full-time employes during the twelve months immediately preceding the date of death and which meets one of the following criteria:(1) An interest as a proprietor in a trade or business carried on as a proprietorship.(2) An interest as a partner in a partnership carrying on a trade or business if:(i) twenty per cent or more of the total capital interest in the partnership is included in determining the gross estate of the decedent; or(ii) the partnership had ten or less partners.(3) Stock in a corporation carrying on a trade or business if: (i) twenty per cent or more in value of the voting stock of the corporation is included in determining the gross estate of the decedent; or(ii) the corporation had ten or less shareholders.(e) Qualified transferee defined.--For purposes of this section, the term "qualified transferee" means a legatee or other transferee receiving: (1) ten per cent or more of the value of a proprietorship qualifying as a small business interest as defined in subsection (d);(2) ten per cent or more of the total capital interest in a partnership qualifying as a small business interest as defined in subsection (d); or(3) ten per cent or more in value of the voting stock of a corporation qualifying as a small business interest as defined in subsection (d).1971, March 4, P.L. 6, No. 2, Art. XXI, § 2154, added 1991, Aug. 4, P.L. 97, No. 22, § 36, effective in 60 days.