BLAIR LEE III, Acting Governor                         106 1

(House Bill 220)

AN ACT concerning

Maryland Estate Tax

FOR the purpose of providing that the amount of the Maryland
estate tax is limited to the amount by which its timely
payment under federal law effects a savings or
diminution of the federal estate tax payable by or out
of the Maryland estate; specifying that failure of the
estate's representative to take and preserve the
maximum, allowable State death tax credit does not
affect the amount of the Maryland estate tax; and
specifying that these provisions apply to all estates
in which the maximum State death tax credit may still
be taken and preserved.

BY repealing and reenacting, with amendments,

Article 62A - Maryland Estate Tax

Section 2

Annotated Code of Maryland

(1972 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 62A — Maryland Estate Tax

2.

In addition to the tax and/or taxes imposed by Article
81, a "Maryland estate tax" is hereby imposed upon the
transfer of the "Maryland estate" of every "decedent," the
amount of which "Maryland estate tax" shall be equal to the
extent, if any, of the excess of the "credit" over the
aggregate of "State taxes" paid by or out of the "Maryland
estate" of the "decedent" or any part thereof, provided,
however, that such "Maryland estate tax" hereby imposed
shall in no case exceed the extent to which its TIMELY
payment fill] IN ACCORDANCE WITH FEDERAL LAW WOULD effect a
saving or diminution in the amount of the "federal estate
tax" payable by or out of the "Maryland estate" of the
"decedent" had this article not been enacted and provided
further that "State taxes" will be considered "paid" only
when and as payment or payments thereof have been made and
received by the appropriate agency or official of the State
of Maryland. THE AMOUNT OF THE MARYLAND ESTATE TAX PAYABLE
UNDER THIS SECTION IS NOT ALTERED, DIMINISHED, OR AFFECTED
IN ANY WAY BY THE FAILURE OF AN ESTATE'S REPRESENTATIVE TO
PROPERLY TAKE AND PRESERVE THE MAXIMUM STATE DEATH TAX
CREDIT ALLOWABLE UNDER FEDERAL LAW.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act