WILLIAM DONALD SCHAEFER, Governor

Ch. 2

(1)  IF AN APPLICATION TO PREPAY THE INHERITANCE TAX
FOR A SUBSEQUENT INTEREST IS NOT FILED IN ACCORDANCE WITH § 7-219
OF THIS SUBTITLE OR IF THE INHERITANCE TAX DETERMINED FOR THE
SUBSEQUENT INTEREST UNDER A PREPAYMENT APPLICATION IS NOT PAID
WHEN DUE UNDER § 7-217(C) OF THIS SUBTITLE:

(I)  THE WHOLE PROPERTY SHALL BE VALUED WHEN THE
SUBSEQUENT INTEREST VESTS IN POSSESSION;

(II)  THE VALUE OF THE SUBSEQUENT INTEREST SHALL
BE VALUED WHEN IT VESTS IN POSSESSION IN THE MANNER STATED IN
SUBSECTION (A) OF THIS SECTION; AND

(III)  THE INHERITANCE TAX DUE ON THE SUBSEQUENT
INTEREST SHALL BE DETERMINED BASED ON THE VALUE OF THE INTEREST
WHEN IT VESTS IN POSSESSION AND ON THE RELATIONSHIP OF THE
ORIGINAL DECEDENT TO THE PERSON IN WHOM THE INTEREST ULTIMATELY
VESTS IN POSSESSION.

(2)  A DEDUCTION FOR INHERITANCE TAX PREVIOUSLY PAID
ON ANY INTEREST IN THE PROPERTY MAY NOT BE ALLOWED.

(D) WHEN APPLICANTS PAY DIFFERENT RATES.

(1)  IF THE COLLATERAL INHERITANCE TAX RATE UNDER §
7-204(B) OF THIS SUBTITLE APPLIES TO 1 OF THE PERSONS BY OR FOR
WHOM AN APPLICATION TO PREPAY THE INHERITANCE TAX IS FILED UNDER
§ 7-219 OF THIS SUBTITLE AND THE LINEAL TAX RATE UNDER § 7-204(C)
OF THIS SUBTITLE APPLIES TO OTHERS, THE HIGHER TAX RATE SHALL BE
USED TO DETERMINE THE INHERITANCE TAX DUE ON THE SUBSEQUENT
INTEREST.

(2)   (I) ON APPLICATION OF A PARTY IN INTEREST, THE
INHERITANCE TAX DUE MAY BE APPORTIONED AMONG THE PERSONS BY OR
FOR WHOM THE APPLICATION TO PREPAY THE INHERITANCE TAX IS FILED.

(II) AFTER THE APPORTIONMENT, EACH OF THOSE
PERSONS IS RESPONSIBLE ONLY FOR THE AMOUNT OF THE INHERITANCE TAX
APPORTIONED TO THAT PERSON.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 8.1, §
161(b), (f), the second sentence of (a), and the first
sentence of (c).

In subsections (a), (c), and (d) of this section, the
former specific references to valuation and
apportionment by a "court" are deleted as unnecessary
in light of § 7-208 of this subtitle.

Subsection (a) of this section is revised to clarify
that the former reference to "the tax collected"
expressed the option to "prepay" the inheritance tax
for the subsequent interest after valuation of that
interest.

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