HERBERT R. O'CONOR, GOVERNOR. 1373

same to the office of the Register of Wills to which the inven-
tory of the personal estate is returnable, and within the same
time and under like penalty, and he shall make oath that said
inventory or inventories is or are a true and perfect inven-
tory or inventories of all the real estate of the deceased, within
this State, that has come to his knowledge, and that, should he
thereafter discover any other real estate belonging to the de-
ceased, in this State, he will return an additional inventory
thereof.

237D. The inventory of the real estate shall be entirely
separate and distinct from that of the personal estate, and a
copy thereof shall be recorded in the office of the Register of
Wills in each county wherein any real estate included in said
inventory is situate.

SEC. 2. And be it further enacted, That Sections 112, 113
and 114 of Article 81 of the Annotated Code of Maryland
(1939 Edition), title "Revenue and Taxes", sub-title "Inheri-
tance Tax", be and the same are hereby renumbered as Sec-
tions 117, 118 and 119 of said Article, respectively.

SEC. 3. And be it further enacted, That Section 120 of Ar-
ticle 81 of the Annotated Code of Maryland (1939 Edition),
title "Revenue and Taxes", sub-title "Inheritance Tax", be and
the same is hereby repealed and re-enacted, with amendments,
to read as follows:

120. When real estate shall be subject to said tax and shall
pass directly to one or more heirs or devisees of the decedent,
the tax shall be paid on the appraised value of said real estate
as shown in the inventory thereof filed in the office of the Reg-
ister of Wills of the county in which administration is grant-
ed. In the event said real estate shall be sold by the executor,
either pursuant to a direction to sell contained in the will of
the decedent or pursuant to a discretionary power and author-
ity to sell contained in the will, or in the event said real estate
is sold to pay debts of the decedent or to pay pecuniary lega-
cies or for any other reason connected with the administration
of the estate of the decedent, then said tax shall not be paid
on the appraised value of said real estate but shall instead be
paid on so much of the net proceeds of the sale thereof as is
included in the distributive share of any heir, devisee, legatee
or distributive of the decedent. In the event the said tax is
paid on the appraised value of said real estate before the sale
thereof and it should subsequently appear that the tax pay-
able with respect to such portion of the proceeds of the sale
thereof as is distributable to the persons hereinbefore named,
is greater than the tax paid on the appraised value of said