REVENUE AND TAXES. 517
Collateral Inheritance Tax.

1929, ch. 226, sec. 105.

105. All estates, real, personal and mixed, money, public and private
securities for money of every kind passing from any person who may die
seised and possessed thereof, being in this State, either by will or under the
intestate laws of this State, or any part of such estate or estates, money or
securities, or interest therein, transferred by deed, grant, bargain, gift or
sale, made or intended to take effect in possession after the death of the
grantor, bargainer, devisor or donor, to any person or persons, or bodies
corporate, iin trust or otherwise, other than to or for the use of the father,
mother, husband, wife, children and lineal descendants of the grantor, bar-
gainor or testator, donor or intestate shall be subject to a tax of five per
centum in every hundred dollars of the clear value of such estate, money
or securities, and all executors, administrators, trustees and other persons
making distribution, shall only be discharged from liability for the amount
of such tax, the payment of which they be charged with, by paying the
same for the use of this State, as hereinafter directed; provided, that no
estate which may be valued at a less sum than five hundred dollars shall be
subject to the tax imposed by this section; provided further, that nothing
in this section shall apply to any such estate or estates, money or securities,
or interest therein, transferred by deed, will, grant, bargain, gift or sale,
made or intended to take effect in possession after the death of the grantor,
bargainer, devisor or donor, or by escheat, passing to this State, or to any
county or city of this State; and provided further that no tax shall be im-
posed which is forbidden by Section 130 of this Article.

124. Collateral inheritance tax is tax upon right of legatee or heir to receive
inheritance, and not estate tax on right to transmit it. Federal decision based
on construction of Pennsylvania statute by Pennsylvania court. Federal inher-
itance tax. Hospital v. Dugan, 146 Md. 378. Cf. Miles v. Curley, 291 Fed. (C. C.
A. 4th), 761.

124. Sec. 124 (old) referred to in footnote to dissenting opinion to decision
holding unconstitutional statute exempting instruments maturing in five years
from tax upon mortgages. Magoun v. Illinois Bank, 170 U. S. 283, upholding
inheritance tax which exempted estates of $500, referred to. Louisville Gas Co.
v. Coleman, 277 U. S. 44, 72 L. Ed. 777.

124. Pennsylvania may impose tax on transfer of stock of corporation of
Maryland and Pennsylvania owned by deceased resident of Maryland. Principal
office. Northern Centl. Rwy. Co. v. Trust Co., 152 Md. 104.
As to the Maryland estate tax, see art. 62A.

1929, ch. 226, sec. 106.

106. Every executor to whom administration may be granted, before
he pays any legacy or distributive share of any estate liable to the tax im-
posed by Section 105, shall pay to the Register of Wills of the proper
county or city, five per centum of every hundred dollars he may hold for
distribution among the distributees or legatees, except as hereinafter pro-
vided, and at that rate for any less sum, for the use of the State; provided
that such tax shall not be paid or collected upon any increase in value of

See important footnote on first page of this article.