WILLIAM DONALD SCHAEFER, Governor

Ch. 2

(1)  A RESIDENT OF THIS STATE; OR

(2)  A NONRESIDENT OF THIS STATE WHOSE ESTATE
INCLUDES, FOR PURPOSES OF THE FEDERAL ESTATE TAX, ANY INTEREST IN
REAL OR TANGIBLE PERSONAL PROPERTY LOCATED IN THIS STATE.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 62A, §
1(b) and the first clause of the first sentence of §
2.

The introductory phrase of this section, "[e]xcept as
provided in § 7-303 of this subtitle", is added to
indicate that exceptions exist.

The former reference to imposition of the Maryland
estate tax "[i]n addition to the tax and/or taxes
imposed by Article 81" is deleted as surplusage.

Defined terms: "Federal estate tax" § 7-301
"Maryland estate" § 7-301
"Property" § 1-101

7-303. EXEMPTION.

(A)  IN GENERAL.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE
MARYLAND ESTATE TAX DOES NOT APPLY TO THE TRANSFER OF PERSONAL
PROPERTY IN AN ESTATE OF A NONRESIDENT DECEDENT, IF, AT THE TIME
OF DEATH, THE DECEDENT IS A RESIDENT OF A STATE OR FOREIGN
COUNTRY WHOSE LAW, WHEN THE PERSONAL PROPERTY IS TRANSFERRED:

(1)  DOES NOT IMPOSE DEATH TAXES ON THE TRANSFER OF
SIMILAR PERSONAL PROPERTY OF A RESIDENT OF THIS STATE; OR

(2)  CONTAINS A RECIPROCAL EXEMPTION FROM DEATH TAXES
SIMILAR TO THE EXEMPTION ALLOWED UNDER THIS SUBSECTION.

(B)  LIMITATION.

THE EXEMPTION UNDER SUBSECTION (A) OF THIS SECTION DOES NOT
INCLUDE A TRANSFER OF TANGIBLE PERSONAL PROPERTY THAT HAS A
TAXABLE SITUS IN THIS STATE.

REVISOR'S NOTE: This section is new language derived
without substantive change from the first sentence of
former Art. 81, § 174, as that sentence related to the
Maryland estate tax.

In the introductory language of subsection (a) of this
section, the former references to a law in existence
"at the time of the distribution, ... or other
disposition of such personal property of such decedent
in Maryland" and "at the time of such distribution,

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