Family members no longer have to pay state inheritance tax on the value of Pennsylvania farms and small businesses they inherit, in certain circumstances. To qualify, at the date of death the business must be family-owned, have been in existence for five years, have fewer than 50 full-time equivalent employees, and have assets of less than $5 million. It must be inherited by a family member (as defined by state law) and stay in the family for seven more years. State law also exempts from inheritance tax some farms that pass to a family member, subject to similar restrictions. More about the Pennsylvania budget law.