Ch. 367                                    1996 LAWS OF MARYLAND

time of the disqualification; providing for certain interest and penalty payments
under certain circumstances: requiring the register of wills to issue a certain
certificate that a disqualifying event has not occurred, under certain circumstances;
specifying when a lien for unpaid inheritance tax arises and the duration of the lien
if the unpaid tax is attributable to disqualification for the exemption; and generally
relating to an elective exemption from the inheritance tax for certain real property
used for farm or agricultural purposes that passes from a decedent to certain
persons.

BY repealing and reenacting, without amendments,
Article - Tax - General
Section 7-204(c) and 7-217(e)
Annotated Code of Maryland
(1988 Volume and 1995 Supplement)

BY repealing and reenacting, with amendments,
Article - Tax - General

Section 7-211, 7-216(d), 7-221, and 13-806(b)(3)
Annotated Code of Maryland
(1988 Volume and 1995 Supplement)

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

Article - Tax - General

7-204.

(c) 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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