HARRY HUGHES, Governor                                          3007

BY repealing and reenacting, with amendments,

Article 81 - Revenue and Taxes

Section 149

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

149.

(a)  There is hereby levied and imposed a tax at the rate of
one 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 the father, mother,
[husband, wife,] children, lineal descendants of such decedent
or any stepchild or stepparent of the decedent.

(b)  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 $2,000 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.

(c)  The rate of 1 percent shall also apply to the value of
a bequest made of assets to a corporation of which all the
stockholders are lineal descendants of the testator.

(D) BOTH THE TAX IMPOSED BY THIS SECTION AND THE TAX
IMPOSED BY § 150 OF THIS SUBTITLE DO NOT APPLY TO A TRANSFER OF
PROPERTY FROM A DECEDENT TO THE SPOUSE OF THE DECEDENT. THE
FOLLOWING TYPES OF PROPERTY FROM A DECEDENT TO THE SPOUSE OF THE
DECEDENT:

(1) REAL PROPERTY; AND

(2) THE FIRST $100,000 OF PROPERTY OTHER THAN REAL
PROPERTY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1985.

Approved May 28, 1985.