PARRIS N. GLENDENING, Governor                             S.B. 514

(e) 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 hold jointly.

(D) THE INHERITANCE TAX RATE IS 6% OF THE CLEAR VALUE OF THE
PROPERTY THAT PASSES FROM A DECEDENT TO THE DECEDENT'S SIBLINGS.

[(d)] (E) If a decedent died on or before May 31, 1975, the rate of the inheritance
tax is the rate in effect on the date of the decedent's death.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
January 1, 1998, and shall apply to the estates of persons who die on or after January 1,
1998.

May 22, 1997

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 514.

This bill extends the sunset date on Baltimore City's authority to establish community
benefit districts from May 31, 1997 to May 31, 2000. Beginning with the 2000 session, the

General Assembly must review every four years the desirability of continuing the
existence of each community benefits district management authority.

House Bill 262, which was passed by the General Assembly and signed by me on this date,
accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate Bill
514.

Sincerely,

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