HERBERT R. O'CONOR, GOVERNOR. 1655

Tax", so as to exempt property used for religious, charitable,
scientific, literary or educational purposes, including the en-
couragement of art and the prevention of cruelty to children
or animals.

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 110 of Article 81 of the Annotated Code of
Maryland (Edition of 1939) title "Revenue and Taxes", sub-
title "Inheritance Tax", be and same is hereby repealed and
re-enacted with amendments, so as to read as follows:

110. There is hereby levied and imposed a tax at the rate
of seven and one-half per centum on every one hundred dollars
of the clear value of any and all property, having a taxable
situs in this State, passing at the death of any resident or non-
resident decedent, in trust or otherwise, to or for the use of
any person or persons, other than the father, mother, husband,
wife, children or lineal descendants of such decedent; pro-
vided, however, that nothing in this section shall apply to prop-
erty passing to the State or to any county or city of the State
by escheat or otherwise, or to monies not in excess of five hun-
dred dollars bequeathed for the perpetual upkeep of a grave or
graves. And provided further that nothing in this section
shall apply to property passing, in trust or otherwise, to
or for the use of a corporation, trust or community chest,
fund, or foundation, created or organized under the law of
the United States or of any State or territory or possession
of the United States, organized and operated exclusively for
religious, charitable, scientific, literary or educational pur-
poses, including the encouragement of art and the prevention
of cruelty to children or animals, a substantial part or all of
the activities and work of which are carried on in the State of
Maryland, and no part of the net earnings of which inures to
the benefit of any private shareholder or individual.

SEC. 2. And be it further enacted, That, to the extent not
previously provided for, the exemptions granted by this Act
shall apply, in addition to property passing at deaths here-
after, to property passing or passed at deaths which occurred
before the passage of this Act, in those instances where the
property has not yet been distributed or where the inheritance
taxes previously imposed have not yet been paid.

SEC. 3. And be it further enacted, That this Act is declared
to be an emergency law and necessary for the immediate
preservation of the public health and safety, and being passed
by a yea and nay vote, supported by three-fifths of all the mem-
bers elected to each of the two Houses of the General Assembly,
the same shall take effect from the date of its passage.

Approved May 6, 1943.