(1997 Replacement Volume and 1998 Supplement)

BY repealing and reenacting, with amendments,
Article - Estates and Trusts
Section 2-205(e)
Annotated Code of Maryland

(1991 Replacement Volume and 1998 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.

(a) In this section, "clear value" means fair market value minus expenses.

(b) Except as provided in [subsection (e)] SUBSECTIONS (C) AND (E)
SUBSECTIONS (C) AND (D) of this section, the inheritance tax rate is [10%] 5% 8% of
the clear value of the property that passes from a decedent.

(c) The inheritance tax rate is 1% 0,9% 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, AND 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.

(D) FOR DECEDENTS DYING BEFORE JULY 1, 2003, EXCEPT AS PROVIDED IN
SUBSECTION (C) OF THIS SECTION, THE INHERITANCE TAX RATE IS:

(1) FOR DECEDENTS DYING ON OR AFTER JULY 1, 1000, BUT BEFORE
JULY 1, 2000, 9% OF THE CLEAR VALUE OF THE PROPERTY THAT PASSES FROM THE
DECEDENT;

(2) FOR DECEDENTS DYING ON OR AFTER JULY 1, 2000, BUT BEFORE
JULY 1, 2001, 8% OF THE CLEAR VALUE OF THE PROPERTY THAT PASSES FROM THE
DECEDENT;