WILLIAM DONALD SCHAEFER, Governor

Ch. 2

For parallel exemption provisions that are similar to
those in subsection (f) of this section and apply to
the Maryland estate tax and the tax on commissions,
see §§ 7-303 and 7-402 of this title, respectively.

Defined terms: "County" § 1-101

"Death taxes" § 7-101 "Estate" § 7-201

"Inheritance tax" § 1-101

"Internal Revenue Code" § 1-101

"Person" § 1-101 "Property" § 1-101

"Property that passes from a decedent" § 7-201

"State" § 1-101

7-204. TAX RATE.

(A)  "CLEAR VALUE" DEFINED.

IN THIS SECTION, "CLEAR VALUE" MEANS FAIR MARKET VALUE MINUS
EXPENSES.

(B)  COLLATERAL TAX RATE...

EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, THE
INHERITANCE TAX RATE IS 10% OF THE CLEAR VALUE OF THE PROPERTY
THAT PASSES FROM A DECEDENT.

(C)  LINEAL TAX RATE.

THE INHERITANCE TAX RATE IS 1% OF THE CLEAR VALUE OF:

(1)  THE PROPERTY THAT PASSES FROM A DECEDENT TO OR
FOR THE USE OF:

(I)  A GRANDPARENT OF THE DECEDENT;

(II)  A PARENT OF THE DECEDENT;

(III)  A SPOUSE OF THE DECEDENT;

(IV)  A CHILD OR OTHER LINEAL DESCENDANT OF THE
DECEDENT;

(V)  A STEPPARENT OR STEPCHILD OF THE DECEDENT;
OR

(VI)  A CORPORATION IF ALL OF ITS STOCKHOLDERS
CONSIST OF THE SURVIVING SPOUSE, PARENTS, STEPPARENTS,
STEPCHILDREN, LINEAL DESCENDANTS OF THE DECEDENT, AND SPOUSES OF
THE LINEAL DESCENDANTS; AND

(2)  THE FIRST $2,000 THAT PASSES FROM THE DECEDENT,
BY SURVIVORSHIP, TO A SPOUSE OF A LINEAL DESCENDANT OF THE
DECEDENT FROM SAVINGS ACCOUNTS THAT THE DECEDENT AND SPOUSE OF
THE LINEAL DESCENDANT HELD JOINTLY.

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