MARVIN HANDEL, Governor

37

SECTION 2. AND BE IT FURTHER ENACTED, That Sections
150, 280(b), 280A(b) and (c), 312(h)(2), 433, 434, and
460 of Article 81 — Revenue and Taxes, of the Annotated
Code of Maryland (1975 Replacement Volume) be and they
are hereby repealed and re—enacted, with amendments, to
read as follows:

Article 81 - Revenue and Taxes

150.

There is hereby levied and imposed a tax at the rate
of [seven and one—half] TEN 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. 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