MARVIN MANDEL, Governor

3567

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 nonresident 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 or any stepchild
or stepparent of the decedent[; and be it further
provided that any person who is a spouse of a lineal
descendant of the decedent, shall only be subject to a
one percent tax on a single joint savings account which
has less than two thousand dollars deposited therein] THE
RATE OF 1 PERCENT SHALL APPLY ALSO TO THE AMOUNT OF ANY
JOINT SAVINGS ACCOUNT PASSING AT THE DEATH OF THE
DECEDENT BY SURVIVORSHIP TO A SPOUSE OF A LINEAL
DESCENDANT UP TO AN AGGREGATE OF $2000 FOR ALL ACCOUNTS
HELD JOINTLY WITH ANY SUCH SPOUSE, ANY AMOUNT IN EXCESS
OF THAT AMOUNT TO BE TAXED AT THE COLLATERAL RATE
PROVIDED IN § 150. Provided, however, that nothing in
this section shall apply to property passing to the State
or to any county or city of the State by escheat or
otherwise, or to moneys not in excess of five hundred
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 any state
or territory or possession of the United States,
organized and operated exclusively for religious,
charitable, scientific, literary or educational purposes,
including the encouragement of art and the prevention of
cruelty to children or animals, if none of the purposes
and no substantial part of the activities of which are
carrying on propaganda or otherwise attempting to
influence legislation and if no part of the net earnings
of which inures to the benefit of any private shareholder
or individual, and (i) if a substantial part of all of
the activities and work of which are carried on in the
State of Maryland or in the District of Columbia, or (ii)
if it is a Maryland corporation, or (iii) if the law of
such jurisdiction other than Maryland does not impose a
legacy, inheritance, succession or death tax of any
character in respect of property transferred to a similar
eleemosynary beneficiary organized or existing under the
law of the State of Maryland or provides for an exemption
from such taxes on such transfers on a reciprocal basis.
For the purposes of this section, the Montgomery County
General Hospital, Incorporated, of Sandy Spring,
Maryland, shall be construed to be a corporation of this
State, organized and operated exclusively for charitable
and educational purposes, no part of the net earnings of
which inures to the benefit of any private shareholder or