Ch. 2

LAWS OF MARYLAND

Also in paragraph (1) of this subsection, the words
"executory or reversionary interest, or other future
interest" are added for clarity.

7-202. IMPOSITION OF TAX.

EXCEPT AS PROVIDED IN § 7-203 OF THIS SUBTITLE, A TAX IS
IMPOSED ON THE PRIVILEGE OF RECEIVING PROPERTY THAT PASSES FROM A
DECEDENT AND HAS A TAXABLE SITUS IN THE STATE.

REVISOR'S NOTE: This section is new language that combines
without substantive change the tax imposition
provisions in former Art. 81, § 149(a) and the first
clause of the first sentence of § 150(a).

The introductory language of this section, "[e]xcept
as provided in § 7-203 of this subtitle", is added for
clarity.

The reference to the inheritance tax being imposed "on
the privilege of receiving property" is added to
clarify the taxable event. For a discussion of the
taxable event and the constitutionality of the
inheritance tax, see State v. Dalrymple and Lemmon,
Administrators, 70 Md. 294, 299 (1889).

The former references to the tax being "levied" are
deleted as included in the word "imposed".

The former phrase "any resident or nonresident" is
deleted as unnecessary in light of the reference to
property with a "taxable situs in the State".

Defined term: "Property that passes from
a decedent" § 7-201

7-203. EXEMPTIONS.

(A)  DEATH BENEFIT.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF A DEATH
BENEFIT EXCLUDED FROM AN ESTATE UNDER § 11-105 OF THE ESTATES AND
TRUSTS ARTICLE.

(B)  FAMILY ALLOWANCE.

THE INHERITANCE TAX DOES    NOT APPLY TO THE RECEIPT OF THE

FAMILY ALLOWANCE THAT A SURVIVING  SPOUSE AND MINOR CHILDREN OF A

DECEDENT ARE ALLOWED UNDER §     3-201 OF THE ESTATES AND TRUSTS
ARTICLE.

(C)  GRAVE MAINTENANCE.

THE INHERITANCE TAX DOES NOT APPLY TO THE RECEIPT OF THE
FIRST $500 OF PROPERTY THAT PASSES FROM A DECEDENT UNDER A WILL
FOR THE PERPETUAL UPKEEP OF GRAVES.

- 142 -