SECTION 3. AND BE IT FURTHER ENACTED, That the Commission shall
hold its first meeting no later than July 15, 1999, at the call of the chairperson.

SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1999.

May 27, 1999

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 398.

This bill phases-in a reduction in the inheritance tax rate for property that passes
from a decedent to a brother or sister from 10% to 5% in fiscal year 2000. In addition,
the bill alters the inheritance tax for property passing to lineal heirs from 1% to 0.9%
beginning July 1, 1999.

House Bill 432, which was passed by the General Assembly and signed by me on May
27, 1999, accomplishes the same purpose. Therefore, it is not necessary for me to sign
Senate Bill 398.

Sincerely,

Parris N. Glendening
Governor

Senate Bill 398

AN ACT concerning

Inheritance Tax—Tax Rate—Siblings, Nieces, and Nephews of Decedent

Inheritance Tax Rate

FOR the purpose of altering the inheritance tax rate for property that passes from a
decedent to or for the use of certain relatives of the decedent beneficiaries;
altering a certain provision regarding the inheritance tax rate for property that
passes from a decedent to or for the use of certain corporations; altering a
provision regarding funding of certain expenses of the registers of wills under
certain circumstances; and providing for the application of this Act; and
generally relating to the inheritance tax rate.

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