Md. Code, Tax - General, Title 7

Md. Code, Tax - General, Title 7
in effect

Md. Code, Tax - General § 7-101

(a) In this title the following words have the meanings indicated. (b) “Court” means: (1) the Orphans’ Court of a county; or (2) a court of the State that exercises the jurisdiction of an Orphans’ Court. (c) “Death taxes” means any estate, inheritance, legacy, succession, or generation-skipping transfer tax imposed by a state. (d) “Register” means the register of wills of a county.

Md. Code, Tax - General § 7-104

When a register claims that a decedent was domiciled in this State at the time of death and the taxing authority of another state makes a similar claim on behalf of that state, then, with the approval of the Attorney General of this State, the Comptroller may make a written agreement with the other taxing authority and with the personal representative to submit the controversy to the decision of a board consisting of 1 or any other uneven number of arbitrators. The personal representative may make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.

Md. Code, Tax - General § 7-105

(a) After reasonable notice to the parties to the agreement, the board of arbitrators chosen under § 7-104 of this subtitle shall hold hearings at the times and places that the board determines. (b) At the hearings, each party to the agreement may: (1) present evidence; and (2) examine witnesses.

Md. Code, Tax - General § 7-106

The board of arbitrators may administer oaths, take testimony, and subpoena witnesses and books, records, and other documents. A subpoena may be signed by any member of the board. If a person fails to obey a subpoena, on petition of the board, any court of record of this State may pass an order requiring compliance with the subpoena and may punish failure to obey the order as a contempt.

Md. Code, Tax - General § 7-107

By majority vote, the board of arbitrators shall determine the domicile of the decedent at the time of death. This determination is final for purposes of imposing and collecting death taxes but not for any other purpose.

Md. Code, Tax - General § 7-108

Except as provided in § 7-106 of this subtitle in respect to issuing subpoenas, any question that arises in the course of the proceeding shall be determined by a majority vote of the board of arbitrators.

Md. Code, Tax - General § 7-109

The Comptroller, the board of arbitrators, or the personal representative shall file: (1) the determination of the board as to domicile, the record of the board’s proceedings, and the agreement to submit to arbitration, made under § 7-104 of this subtitle, or a duplicate, with the authority that has jurisdiction to determine the death taxes in the state determined to be the domicile; and (2) copies of each document with the authorities that would have been empowered to determine the death taxes in each of the other states involved.

Md. Code, Tax - General § 7-110

If the board of arbitrators determines that the decedent died domiciled in this State, interest and penalties, if otherwise imposed by law, for nonpayment of death taxes between the dates of the agreement and of filing of the determination of the board as to domicile, may not exceed a rate determined under § 13-604 of this article.

Md. Code, Tax - General § 7-111

This Part II of this subtitle does not prevent the parties to the agreement made under § 7-104 of this subtitle from making a written compromise at any time, if not prohibited by other law. A compromise may determine the amounts to be accepted by this and any other state involved in full satisfaction of death taxes.

Md. Code, Tax - General § 7-112

The compensation and expenses of the members of the board of arbitrators and its employees may be agreed on by the members and the personal representative or, if they cannot agree, shall be determined by the appropriate court of record of the state determined by the board to be the domicile of the decedent. The amounts agreed on or determined shall be deemed an expense of administration and are payable by the personal representative.

Md. Code, Tax - General § 7-113

This Part II of this subtitle applies only if each state that is involved in a controversy has a law that is identical or substantially similar to this Part II of this subtitle.

Md. Code, Tax - General § 7-114

This Part II of this subtitle shall be interpreted and construed to effectuate its general purpose to make uniform the law of those states that enact it.

Md. Code, Tax - General § 7-118

When a register claims that a decedent was domiciled in this State at the time of death and the taxing authority of another state makes a similar claim on behalf of that state, then, with the approval of the Attorney General of this State, the Comptroller may make a written agreement of compromise with the other taxing authority and the personal representative that a certain sum shall be accepted in full satisfaction of all death taxes imposed by this State, including any interest or penalties to the date of filing the agreement. The agreement also shall determine the amount to be accepted by the other state in full satisfaction of death taxes. The personal representative may make the agreement.

Md. Code, Tax - General § 7-119

(a) The Comptroller or the personal representative shall file the agreement, or a duplicate, with the authority that would be empowered to determine death taxes for this State if there had been no agreement. (b) When the agreement is filed, the death taxes shall be deemed conclusively determined as provided in the agreement.

Md. Code, Tax - General § 7-120

Unless the death taxes are paid within 60 days after the agreement is filed, interest and penalties shall accrue on the amount determined in the agreement, but the time between the decedent’s death and the filing may not be included in computing the interest and penalties.

Md. Code, Tax - General § 7-121

This Part III of this subtitle shall be interpreted and construed to effectuate its general purpose to make uniform the law of those states that enact it.

Md. Code, Tax - General § 7-201

(a) In this subtitle the following words have the meanings indicated. (b) “Estate” means property that is subject to administration under the Estates and Trusts Article as the estate of a decedent. (c) (1) “Less than absolute interest” means an interest less than an absolute interest in property, in trust or otherwise. (2) “Less than absolute interest” includes: (i) a life estate; (ii) an interest for a term of years; (iii) a contingent or vested remainder, or executory or reversionary interest that a person other than the decedent creates; or (iv) any other interest that is less than absolute. (d) (1) “Property that passes from a decedent” includes: (i) property that passes, by will or under the intestate laws of the State, at or after the death of a decedent, in trust or otherwise, to or for the use of another person; (ii) property in which, at death, a decedent had an interest as a joint tenant; or (iii) except for a bona fide sale for an adequate and full consideration in money or money’s worth, property that passes by an inter vivos transfer by a decedent, in trust or otherwise, if: 1. the transfer is made in contemplation of death; 2. the transfer of a material part of the property of the decedent in the nature of a final disposition or distribution is made by the decedent within 2 years before death and is not shown to not have been made in contemplation of death; 3. the transfer is intended to take effect in possession or enjoyment at or after the death of the decedent; or 4. under the transfer, the decedent retained any dominion over the transferred property during the life of the decedent, including the retention of: A. a beneficial interest; B. a power of revocation, absolute or conditional; or C. a power of appointment by will or otherwise. (2) Notwithstanding any parol agreement, the written form of the title is controlling for intangible personal property held in joint tenancy. (e) (1) “Subsequent interest” means a vested or contingent remainder, executory or reversionary interest, or other future interest that is created by a decedent and will or may vest in possession after the death of the decedent. (2) “Subsequent interest” includes a sole or concurrent subsequent interest.

Md. Code, Tax - General § 7-202

Except as provided in § 7-203 of this subtitle, a tax is imposed on the privilege of receiving property that passes from a decedent and has a taxable situs in the State.

Md. Code, Tax - General § 7-203

(a) The inheritance tax does not apply to the receipt of an annuity or other payment under a public or private employees’ pension or benefit plan if the annuity or other payment is not taxable for federal estate tax purposes. (b) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Child” includes a stepchild or former stepchild. (iii) “Parent” includes a stepparent or former stepparent. (iv) “Surviving spouse” means a surviving spouse who has not remarried. (2) The inheritance tax does not apply to the receipt of 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 of the decedent or a lineal descendant of a child of the decedent; (v) a spouse of a child of the decedent or a spouse of a lineal descendant of a child of the decedent; (vi) a surviving spouse of a deceased child of the decedent or of a deceased lineal descendant of a child of the decedent who was married to the child or lineal descendant of the child at the time of the child’s or lineal descendant’s death; (vii) a brother or sister of the decedent; or (viii) a corporation, partnership, or limited liability company if all of its stockholders, partners, or members consist of individuals specified in items (i) through (vii) of this paragraph. (c) The inheritance tax does not apply to the receipt of the first $500 of property that passes from a decedent under a will for the perpetual upkeep of graves. (d) The inheritance tax does not apply to the receipt of the proceeds of a life insurance policy payable to any beneficiary other than the estate of the insured. (e) The inheritance tax does not apply to the receipt of property that passes from a decedent to or for the use of an organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code or to which transfers are deductible under § 2055 of the Internal Revenue Code if the organization: (1) is incorporated under the laws of this State; (2) conducts a substantial part of all its activities in this State or in the District of Columbia; or (3) has its principal place of business in a jurisdiction whose law: (i) does not impose death taxes on the receipt of property that passes from a decedent to a beneficiary of this State that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code or to which transfers are deductible under § 2055 of the Internal Revenue Code; or (ii) contains a reciprocal exemption from death taxes similar to the exemption allowed in this subsection. (f) (1) Except as provided in paragraph (2) of this subsection, the inheritance tax does not apply to the receipt of personal property that passes from a nonresident decedent if, at the time of death, the decedent is a resident of a state or foreign country whose law, on the date of the decedent’s death: (i) does not impose death taxes on the receipt of similar personal property of a resident of this State; or (ii) contains a reciprocal exemption from death taxes similar to the exemption allowed under this subsection. (2) The exemption under paragraph (1) of this subsection does not include the receipt of tangible personal property that has a taxable situs in this State. (g) The inheritance tax does not apply to the receipt of property that passes from a decedent to any 1 person if the total value of the property does not exceed $1,000. (h) The inheritance tax does not apply to the receipt of property that is distributed from an estate that qualifies under § 5–601 of the Estates and Trusts Article for administration as a small estate. (i) The inheritance tax does not apply to the receipt of property that passes from a decedent to the State, a county, or a municipal corporation of the State. (j) The inheritance tax does not apply to the receipt of property that is income, including gains and losses, accrued on probate assets after the date of death of the decedent. (k) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Holocaust victim” means an individual who died or lost property as a result of discriminatory laws, policies, or actions targeted against discrete groups of individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether or not the individual was actually a member of any of those groups, or because the individual assisted or allegedly assisted any of those groups, between January 1, 1929 and December 31, 1945, in the country of Nazi Germany, areas occupied by Nazi Germany, those European countries allied with Nazi Germany, areas occupied by those European countries allied with Nazi Germany, or any other neutral European country or area in Europe under the influence or threat of invasion by Nazi Germany or by any European country allied with or occupied by Nazi Germany. (iii) “Nazi Germany” means: 1. for the period from 1929 to 1933, the Republic of Germany, commonly referred to as the Weimar Republic; and 2. for the period from 1933 through 1945, Deutsche Reich. (2) The inheritance tax does not apply to the receipt of property that is: (i) tangible or intangible property or compensation for tangible or intangible property that was seized, misappropriated, or lost as a result of the actions or policies of Nazi Germany toward a Holocaust victim; or (ii) amounts received by a decedent as reparations or restitution for the loss of liberty or damage to the health of the decedent because the decedent was: 1. a Holocaust victim; or 2. a spouse or descendant of a Holocaust victim. (3) The exclusion under paragraph (2) of this subsection includes interest on the proceeds receivable as insurance under policies issued by European insurance companies prior to and during World War II to a Holocaust victim. (4) The exclusion under paragraph (2) of this subsection does not include: (i) assets acquired with the assets described in paragraph (2) of this subsection; or (ii) assets acquired with the proceeds from the sale of the assets described in paragraph (2) of this subsection. (5) The subtraction under paragraph (2)(i) of this subsection shall only apply if the decedent: (i) was the first recipient of the assets described in paragraph (2)(i) of this subsection after their recovery; and (ii) was: 1. a Holocaust victim; or 2. a spouse or descendant of a Holocaust victim. (l) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Domestic partner” means an individual with whom another individual has established a domestic partnership. (iii) “Domestic partnership” means a relationship between two individuals that is a domestic partnership: 1. under § 6–101(a) of the Health – General Article; or 2. registered in accordance with § 2–214 of the Estates and Trusts Article. (2) If the domestic partner of a decedent provides the affidavit described in § 6–101(b)(1) of the Health – General Article or any two of the proofs of domestic partnership listed under § 6–101(b)(2) of the Health – General Article, the inheritance tax does not apply to the receipt of an interest in a joint primary residence that: (i) at the time of death was held in joint tenancy by the decedent and the domestic partner; and (ii) passes from the decedent to or for the use of the domestic partner. (3) For a domestic partnership registered in accordance with § 2–214 of the Estates and Trusts Article, the inheritance tax does not apply to the receipt of property that passes from the decedent to or for the use of the domestic partner of the decedent. (m) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of the Internal Revenue Code. (iii) “Perpetual conservation easement” means an easement on real property that perpetually restricts the use of the real property to farming purposes. (2) The inheritance tax does not apply to the receipt of real property that is subject to a perpetual conservation easement and passes from a decedent to or for the use of a niece or nephew of the decedent. (3) (i) The inheritance tax shall be recaptured as provided in this paragraph if the real property that is excluded under paragraph (2) of this subsection ceases to be used for farming purposes. (ii) The amount of the inheritance tax imposed under this paragraph shall be the inheritance tax that would have been payable at the time of the decedent’s death but for the provisions under paragraph (2) of this subsection.

Md. Code, Tax - General § 7-204

(a) In this section, “clear value” means fair market value minus expenses. (b) The inheritance tax rate is 10% of the clear value of the property that passes from a decedent. (c) 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.

Md. Code, Tax - General § 7-207

Except as provided in §§ 7-209 through 7-211 of this subtitle, the value of property that passes from a decedent is, for purposes of the inheritance tax, the appraised value of the property required to be stated in the inventory required to be filed under § 7-225 of this subtitle.

Md. Code, Tax - General § 7-208

(a) (1) If there is a formal administration of an estate, the court with jurisdiction to administer the estate shall determine, for purposes of the inheritance tax, the value of any concurrent absolute interest or less than absolute interest in property that passes from the decedent, that is listed in an account required under § 7-305 of the Estates and Trusts Article, and that is not valued in the manner required in §§ 7-209 through 7-211 of this subtitle. (2) If the court approves an account required under § 7-305 of the Estates and Trusts Article, in which a concurrent absolute interest or less than absolute interest is valued: (i) approval of the account is deemed to be court determination of the value of the concurrent absolute or less than absolute interest, for purposes of the inheritance tax; and (ii) a separate petition to the court or a separate judicial order is not needed to value the concurrent absolute interest or the less than absolute interest. (b) If there is no formal administration of the estate, the register in the county where the inventory is filed shall determine, for purposes of the inheritance tax, any concurrent absolute interest or less than absolute interest in property that passes from a decedent.

Md. Code, Tax - General § 7-209

(a) Except as otherwise provided by an instrument that creates a joint tenancy or by law, if, before death, a decedent had an absolute interest in property as a joint tenant, the value of the interest in the property that passes from the decedent is determined by dividing the value of the entire property by the number of joint tenants, including the decedent. (b) Except as otherwise provided by an instrument that creates a joint tenancy or law, if an absolute interest in property passes from a decedent to 2 or more persons as joint tenants, the value of the interest that passes to each joint tenant is determined by dividing the value of the absolute interest in the property by the number of joint tenants to whom the absolute interest in the property passes. (c) (1) If an absolute interest in property passes from a decedent to 2 or more persons as tenants by the entireties: (i) the value of the interest that passes to each tenant is determined by dividing the value of the entire value of the absolute interest in the property by the number of tenants to whom the absolute interest in the property passes; and (ii) the tenants by the entireties are jointly and severally liable for the entire inheritance tax. (2) When property passes from a decedent to a husband and wife as tenants by the entireties and only 1 spouse is entitled to the exemption under § 7-203(b) of this subtitle, the exemption applies to 50% of the value of the property, and the inheritance tax applies to the other 50%. (d) (1) A sole interest less than absolute shall be valued in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax. (2) If the sole interest less than absolute depends on, or is measured by, the life of an individual whose life expectancy is shown to be less than average for the individual’s age because of poor health, the value of the sole interest less than absolute may be adjusted. (e) If a less than absolute interest in property passes from the decedent to 2 or more persons concurrently, the value of the interest in the property that passes to each person is determined in accordance with the applicable regulations of the Internal Revenue Code that relate to the federal estate tax.

Md. Code, Tax - General § 7-210

(a) (1) If an application to prepay inheritance tax for a subsequent interest in property is filed under § 7-219 of this subtitle, the value of the subsequent interest is determined by subtracting the value of all preceding and concurrent interests from the value of the whole property. (2) The total inheritance tax on all interests in the property valued shall equal the inheritance tax that would have been due if an absolute interest in the property passed from the decedent. (b) (1) If a subsequent interest in property ultimately vests in possession in a person other than the person by or for whom an application to prepay the inheritance tax was filed under § 7-219 of this subtitle and if the inheritance tax determined under the prepayment application was paid: (i) the subsequent interest shall be revalued when it vests in possession; and (ii) the inheritance tax due on the subsequent interest shall be redetermined based on the value of the interest when it vests in possession and on the relationship of the original decedent to the person in whom the interest ultimately vests in possession. (2) A deduction from the inheritance tax calculated under paragraph (1)(ii) of this subsection for prepaid inheritance tax on the interest shall be allowed. (c) (1) If an application to prepay the inheritance tax for a subsequent interest is not filed in accordance with § 7-219 of this subtitle or if the inheritance tax determined for the subsequent interest under a prepayment application is not paid when due under § 7-217(d) of this subtitle: (i) the whole property shall be valued when the subsequent interest vests in possession; (ii) the value of the subsequent interest shall be valued when it vests in possession in the manner stated in subsection (a) of this section; and (iii) the inheritance tax due on the subsequent interest shall be determined based on the value of the interest when it vests in possession and on the relationship of the original decedent to the person in whom the interest ultimately vests in possession. (2) A deduction for inheritance tax previously paid on any interest in the property may not be allowed. (d) (1) If the inheritance tax applies to 1 or more of the persons by or for whom an application to prepay the inheritance tax is filed under § 7-219 of this subtitle and the exemption under § 7-203(b) of this subtitle applies to others, the inheritance tax applies to the subsequent interest. (2) (i) On application of a party in interest, the inheritance tax due may be apportioned among the persons by or for whom the application to prepay the inheritance tax is filed. (ii) After the apportionment, each of those persons is responsible only for the amount of the inheritance tax apportioned to that person.

Md. Code, Tax - General § 7-211

(a) The person responsible for paying the inheritance tax may elect to value real property, for purposes of the inheritance tax: (1) at its most recent real property assessment plus any inflation allowance if, for the 5 years immediately before the date of the death of the decedent, the real property qualifies under § 8-209 or § 8-211 of the Tax - Property Article as farmland or woodland; or (2) based on its actual use on the date of the decedent’s death if the real property qualifies as National Register property by a listing in the National Register of Historic Places, whether as a separate property or as a part of a listed district. (b) (1) To elect a valuation under subsection (a) of this section, the person responsible for paying the inheritance tax shall file with the register a statement that: (i) contains a written election of a valuation under subsection (a) of this section, in the form and manner that the Comptroller requires; and (ii) describes the qualifying real property in reasonable detail, including its fair market value. (2) The statement shall be filed: (i) with the administration account that affects the distribution of the qualifying real property; or (ii) if the qualifying real property is not subject to formal administration, with the report or inventory required under § 7-224 or § 7-225(c) or (d) of this subtitle.

Md. Code, Tax - General § 7-214

(a) The register in the county where the court that administers an estate is located shall determine the inheritance tax that is due on any interest in property included in the estate when the personal representative of the decedent accounts for the distribution of the property. (b) If there is no formal administration of an estate, the register in the county where the inventory required under § 7-225(c), (d), or (e) of this subtitle is to be filed shall: (1) determine the inheritance tax that is due on any interest in property that passes from a decedent: (i) when the inventory is filed; or (ii) if the inventory is not filed, when the appraisal is filed by the appraisers appointed under § 7-231 of this subtitle; and (2) send a tax bill for the inheritance tax due to each person responsible for paying the tax. (c) The register of the county where the inventory required under § 7-225 of this subtitle is filed shall determine the inheritance tax due on a subsequent interest in property that passes from a decedent.

Md. Code, Tax - General § 7-215

The person responsible under § 7-216 of this subtitle for paying the inheritance tax shall pay it to the register who determines the inheritance tax under § 7-214 of this subtitle.

Md. Code, Tax - General § 7-216

(a) (1) Except as otherwise provided in this section, the inheritance tax on property that passes from a decedent shall be paid, before it is distributed, by the person who distributes the property. (2) The person who distributes property that passes from a decedent is liable for the inheritance tax on the property distributed until the tax is paid. (3) Unless a decedent specified a source for paying the inheritance tax and there is sufficient money from that source, the court may order sale of property to pay the inheritance tax on the property. (b) The inheritance tax on property that passes from a decedent shall be paid by the recipient if: (1) the person who distributes the property does not pay the tax as required by subsection (a) of this section; or (2) the property passes from the decedent to the recipient without distribution. (c) If the property that passes from a decedent is a subsequent interest, the inheritance tax on the property shall be paid: (1) by the person by or for whom a prepayment application is made under § 7-219 of this subtitle; or (2) if the inheritance tax is not prepaid on the subsequent interest, by the person in whom the property or subsequent interest ultimately vests. (d) If property valued or exempt under § 7-211 of this subtitle is disqualified for the special valuation or exemption under § 7-221 of this subtitle, the person who owns the property when the disqualifying event occurs shall pay any additional inheritance tax determined under § 7-221 of this subtitle.

Md. Code, Tax - General § 7-217

(a) Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if an estate is administered subject to the jurisdiction of a court, the person responsible for paying the inheritance tax shall pay the tax when the register determines the amount due, at the time that the representative accounts for the distribution of property of the estate. (b) Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if an estate is administered under modified administration, the person responsible for paying the inheritance tax shall pay the tax when the personal representative files the final report under modified administration. (c) Except as provided in § 7-218 of this subtitle and subsections (d), (e), and (f) of this section, if there is no formal administration subject to the jurisdiction of a court for property that passes from a decedent, the person responsible for paying the inheritance tax shall pay the tax when the register determines the amount due. (d) Except as provided by subsection (e) of this section, if an interest in property is valued under § 7-209(d) or (e) or § 7-210 of this subtitle, the person responsible for paying the inheritance tax shall pay the tax within 30 days after the determination of the inheritance tax due on the interest. (e) If the inheritance tax on a subsequent interest in property is not prepaid, the person responsible for paying the tax shall pay the tax when the interest vests in possession. (f) If additional inheritance tax becomes due under § 7-221 of this subtitle, the person responsible for paying the tax shall pay the tax when the disqualifying event occurs.

Md. Code, Tax - General § 7-218

(a) In this section, “small business” means a firm that: (1) is independently owned and operated; (2) is not a subsidiary of another firm; (3) is not dominant in its field of operation; and (4) in its most recently completed fiscal year, did not employ in its operations more than 25 individuals. (b) On application of a person responsible for paying the inheritance tax and subject to § 13-601 of this article, the Comptroller may allow an alternative payment schedule for the inheritance tax, not exceeding a 5-year period, if payment of the tax on the due date would require the sale of a small business or any interest in a small business that passes from a decedent. (c) A person may apply for an alternative payment schedule by filing with the Comptroller an application on the form and in the manner that the Comptroller requires. (d) The payment schedule may be in the form of: (1) a payment deferral; or (2) an installment payment plan. (e) (1) For each alternative payment schedule allowed under subsection (b) of this section, the Comptroller shall specify the procedures and guidelines, including: (i) conditions of eligibility; and (ii) 1. amount and duration of any payment deferral; or 2. amount of and scheduled time for any installment payments. (2) If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant. (f) For each alternative payment schedule allowed under subsection (b) of this section, the Comptroller shall give the appropriate register notice of: (1) the grant; (2) the procedures and guidelines specified under subsection (e)(1) of this section; and (3) the responsibilities of the register for receipt of payments. (g) If an alternative payment schedule is allowed under subsection (b) of this section, the person responsible for paying the inheritance tax shall pay the tax in accordance with the schedule. (h) The Comptroller shall adopt procedures to provide notice about the availability of alternative payment schedules under this section.

Md. Code, Tax - General § 7-219

(a) Within a reasonable time after the valuation of a less than absolute interest in property that passes from a decedent, an application to prepay the inheritance tax for a subsequent interest in the same property may be filed with the register of the county where the information report was filed under § 7–224 of this subtitle. (b) (1) An application under subsection (a) of this section may be filed by or for a person or class of persons, whether or not then in being, in whom may vest a subsequent interest in the property valued. (2) An application under subsection (a) of this section may not be made by or for a person who, under the instrument that created the property interests, has no interest other than the possibility of becoming an appointee by the exercise of a power of appointment. (3) A person who only has the interest described in paragraph (2) of this subsection is entitled to receive the benefits of prepayment under § 7–210(b) of this subtitle.

Md. Code, Tax - General § 7-220

(a) Except as provided in subsection (b) of this section, if the total inheritance tax determined on all interests in property is paid when due and equals the inheritance tax that would have been due if an absolute interest in the property passed from the decedent, additional inheritance tax is not due because of a subsequent invasion of the corpus by or for any person under the terms of the instrument that created the property interests. (b) (1) If the tax rate applicable to the person invading the corpus exceeds the tax rate already paid on the property, additional inheritance tax shall be due on the property withdrawn. (2) The amount of additional inheritance tax due under paragraph (1) of this subsection is the difference between the inheritance tax that was paid on the property and the inheritance tax that would have been due on the property if determined at the higher rate.

Md. Code, Tax - General § 7-221

(a) (1) If within 15 years after the date of a decedent’s death, property valued under § 7-211 of this subtitle is disqualified for the special valuation, additional inheritance tax is due in the amount of the difference between the inheritance tax paid and the inheritance tax that would have been paid if the election under § 7-211 of this subtitle had not been made. (2) Property is disqualified for the special valuation under § 7-211 of this subtitle, if: (i) the property qualified for valuation as National Register property and is removed from the National Register of Historic Places; or (ii) the property qualified for valuation as farmland or woodland and ceases to qualify for farmland or woodland assessment under § 8-209 or § 8-211 of the Tax - Property Article. (3) The Department or the Maryland Historical Trust shall report to the Comptroller and the register any event that causes property to be disqualified for special valuation. (b) (1) The property owner may submit to the appropriate register an application for a certificate that a disqualifying event has not occurred before a date that is stated in the certificate. (2) The application shall: (i) be made on the form and in the manner that the Comptroller requires; and (ii) include appropriate certifications of the property owner. (c) (1) After receiving the application, the register shall inquire about the property with: (i) the Department, for farmland or woodland property; or (ii) the Maryland Historical Trust, for property listed on the National Register of Historic Places. (2) The Department or Maryland Historical Trust shall report to the register about the property. (d) If, based on the certifications of the property owner and the report under subsection (c)(2) of this section, the register determines that a disqualifying event has not occurred, the register shall issue a certificate of nondisqualification, on the form and in the manner that the Comptroller determines. (e) The date stated in a certificate of nondisqualification shall be: (1) on or after the application date; and (2) as close as possible to the date on which the certificate is issued. (f) A grantee of the property and the successors or assigns of the grantee may rely conclusively on the certificate issued under subsection (d) of this section.

Md. Code, Tax - General § 7-224

(a) Within 3 months after the grant of letters of administration, a personal representative shall prepare and file with the register who issued the letters a written report that: (1) is made under oath; (2) lists the property as defined in § 7-201(d)(1)(ii) and (iii) of this subtitle that passes from a decedent; and (3) if appropriate, states that the personal representative does not have knowledge of any property or transfer of property required by item (2) of this subsection to be reported. (b) If, after filing the report required by subsection (a) of this section, the personal representative discovers an omission from the report, the personal representative immediately shall report the omitted property to the register.

Md. Code, Tax - General § 7-225

(a) A person required to file an inventory shall have the property appraised in the manner provided in Title 7, Subtitle 2 of the Estates and Trusts Article. (b) Each personal representative shall file the inventory required by § 7-201 of the Estates and Trusts Article with the register within 3 months after appointment. (c) If there is no formal administration of an estate, each person other than a personal representative who distributes property that passes from the decedent shall file the inventory required by § 7-201 of the Estates and Trusts Article, within 3 months after the death of the decedent and before distributing the property: (1) for personal property, with the register in the county where the decedent resided at the time of death; and (2) for real property, with the register in the county where the real property is located. (d) If there is no formal administration of an estate, each person who receives property that passes from a decedent without distribution shall file the inventory required by § 7-201 of the Estates and Trusts Article, within 3 months after the death of the decedent: (1) for personal property, with the register in the county where the decedent resided at the time of death; and (2) for real property, with the register in the county where the real property is located. (e) A foreign personal representative who administers an estate with property that is located in this State and subject to the inheritance tax shall file with the register of the county where the foreign personal representative believes the largest part, in value, of the property is located: (1) a copy of the appointment as personal representative; (2) a copy of the will of the decedent, if any, authenticated in accordance with 28 U.S.C. § 1738; and (3) an inventory of all of the property that the estate owns in this State that: (i) is made under oath; (ii) describes each item in reasonable detail; and (iii) indicates the fair market value of each item and the basis on which the value is determined.

Md. Code, Tax - General § 7-228

(a) For an estate of a nonresident decedent, if the death taxes and interest and penalties on the death taxes due to a domiciliary state or a political subdivision of a domiciliary state are not paid or secured, the unit responsible for collecting the death taxes in the domiciliary state or subdivision may petition and receive from the court in this State that granted letters of administration for the estate an order for: (1) an accounting of the property in this State; and (2) payment of the death taxes and interest and penalties on the death taxes. (b) The personal representative of an estate of a nonresident decedent is not entitled to approval for a final accounting or discharge until the personal representative files with the court that granted letters of administration for the estate: (1) proof that all death taxes and the interest and penalties on the death taxes have been paid to or secured for the domiciliary taxing authorities; or (2) the consent of the domiciliary taxing authorities to the final accounting or discharge. (c) This section and § 7-231(e) of this subtitle shall be construed liberally to ensure that the domiciliary state of a nonresident decedent receives the death taxes and the interest and penalty on the death taxes due to that state from the estate of the decedent.

Md. Code, Tax - General § 7-231

(a) In addition to the duties set forth elsewhere in this subtitle and the Estates and Trusts Article, the register has the duties set forth in this section. (b) If an inventory is not filed as required by § 7-225(c), (d), or (e) of this subtitle, the register of the county where the inventory should have been filed shall apply to the appropriate court for the appointment of at least 2 appraisers to value the property for which an inventory should have been filed and that comes to the attention of the register. (c) (1) If an election is made for the special valuation of property under § 7-211 of this subtitle, the register shall: (i) give the Department notice of the election; and (ii) cause a notice of inchoate lien to be recorded in the land records of the county where the land is located. (2) The notice of inchoate lien shall include: (i) the date of death of the decedent; and (ii) on the basis of the fair market value of the property, the difference between the inheritance tax on the value elected under § 7-211 of this subtitle and the inheritance tax that would otherwise be payable. (3) The notice shall be indexed: (i) in the name of the register as grantee and in the name of the distributee of the qualifying property as the surviving joint tenant or in the name of the person responsible for paying the inheritance tax as grantor; and (ii) in the block records, if maintained. (4) When the additional inheritance tax that is due is paid, the register shall record a release of the lien in the land records of the county where the land is located. (d) (1) The register shall give a receipt to each person who pays inheritance tax. (2) The receipt discharges the person from liability for the amount of the inheritance tax that is paid. (e) For an estate of a nonresident decedent, the register shall cooperate with the domiciliary taxing authorities and give them any information requested about the estate.

Md. Code, Tax - General § 7-232

Each register shall certify to the Comptroller the amount of inheritance tax paid for each decedent for whom a Maryland estate tax return is filed with the register or for whom the register receives a request for the certification from: (1) the Comptroller; (2) the personal representative of the decedent’s estate; or (3) any person required to file a Maryland estate tax return with regard to property passing from the decedent.

Md. Code, Tax - General § 7-233

(a) Each month, each register shall pay into the State Treasury an amount equal to the inheritance tax collected in the preceding month, less the commission allowed in subsection (b) of this section. (b) A register is allowed a 25% commission on the inheritance tax collected. (c) Each month, each register shall file with the Comptroller an inheritance tax collection report on the form that the Comptroller requires. (d) If an inheritance tax claim for refund under § 13-901 of this article is allowed, the register making the determination shall: (1) certify the amount to the Comptroller for payment; and (2) if authorized by the Comptroller under § 2-702 of this article, pay the refund from money that the register has collected under this subtitle but not paid into the State Treasury.

Md. Code, Tax - General § 7-234

(a) If a register fails to account for and remit money as required under § 7-233 of this subtitle, then 30 days after the failure, the Comptroller shall notify the Attorney General to put the register’s bond in suit for the use of the State. (b) In a suit under this section, the State shall recover: (1) the amount that seems to be due; and (2) interest, at the rate of 10% a year, from the date that the amount was payable. (c) (1) A recovery under subsection (b) of this section is evidence of misbehavior. (2) If a register is convicted of misbehavior for failure to account for and remit money as required under § 7-233 of this subtitle, the register shall be removed from office. (d) If a register fails to account for or remit money as required under § 7-233 of this subtitle, the register shall forfeit the commission to which the register otherwise would be entitled.

Md. Code, Tax - General § 7-301

(a) In this subtitle the following words have the meanings indicated. (b) “Estate” means the federal gross estate of a decedent, as determined by Subtitle B of the Internal Revenue Code, as increased by any property not otherwise included in the federal gross estate that is deemed to be included pursuant to § 7-309(b)(6) of this subtitle. (c) “Federal estate tax” means the tax imposed by Chapter 11 of the Internal Revenue Code. (d) “Maryland estate” means the part of an estate that this State has the power to subject to the Maryland estate tax.

Md. Code, Tax - General § 7-302

Except as provided in § 7-303 of this subtitle, a tax is imposed on the transfer of the Maryland estate of each decedent who, at the time of death, was: (1) a resident of this State; or (2) a nonresident of this State whose estate includes any interest in: (i) real property permanently located in this State; or (ii) tangible personal property that has a taxable situs in this State.

Md. Code, Tax - General § 7-303

(a) 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) 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.

Md. Code, Tax - General § 7-304

(a) Subject to § 7-309 of this subtitle, in this section, “federal credit” means the maximum credit for death taxes paid to any state that is allowable under § 2011 of the Internal Revenue Code against the federal estate tax of a decedent as reduced by the proportion that the amount of the estate not included in the Maryland estate bears to the amount of the entire estate of the decedent. (b) (1) Except as otherwise provided in this subsection, the Maryland estate tax is the amount, if any, by which the federal credit exceeds the total of death taxes other than the Maryland estate tax that: (i) are imposed by a state on property included in the Maryland estate; (ii) are allowable in computing the federal credit; and (iii) except as provided in § 13-906 of this article, have actually been paid out of the Maryland estate and received by the appropriate unit of this State. (2) Subject to § 7-309 of this subtitle, the Maryland estate tax may not exceed the amount whose timely payment in accordance with federal law would reduce the amount of the federal estate tax payable out of the Maryland estate had this subtitle not been enacted. (c) The Maryland estate tax is not affected by a failure to take or preserve the federal credit.

Md. Code, Tax - General § 7-305

(a) If a federal estate tax return is required to be filed, the person responsible for filing the federal estate tax return shall complete, under oath, and file a Maryland estate tax return with the Comptroller 9 months after the date of the death of a decedent. (b) If a federal estate tax return is not required to be filed but a federal estate tax return would be required to be filed if the applicable exclusion amount under § 2010(c) of the Internal Revenue Code were no greater than the applicable exclusion amount specified under § 7–309(b) of this subtitle, the person who would be responsible for filing the federal estate tax return shall complete, under oath, and file a Maryland estate tax return with the Comptroller 9 months after the date of the death of the decedent. (c) (1) If a person files a Maryland estate tax return solely for the purpose of making the election under § 7–309(b) of this subtitle to allow a surviving spouse to take into account the deceased spousal unused exclusion amount, the person shall file the Maryland estate tax return within the time period prescribed for making an election on a federal estate tax return to allow a surviving spouse to take into account the deceased spousal unused exclusion amount. (2) The Comptroller shall adopt regulations necessary to ensure that the time period for making the election under § 7–309(b) of this subtitle on a Maryland estate tax return is identical to that for a similarly situated federal estate tax return. (d) (1) After a person files a Maryland estate tax return, the person shall file an amended Maryland estate tax return with the Comptroller if the Maryland estate tax liability is increased because of: (i) a change in the federal gross estate, federal taxable estate, federal estate tax, or other change as determined under the Internal Revenue Code; (ii) after–discovered property; (iii) a correction to the value of previously reported property; (iv) a correction to the amount of previously claimed deductions; or (v) any other correction to a previously filed return. (2) (i) The amended return shall be filed within 90 days after the later to occur of the date of the event that caused the increase in the Maryland estate tax liability or the date on which the person required to file an amended Maryland estate tax return learned or reasonably should have learned of the increase in the Maryland estate tax liability. (ii) On request, each register shall certify to the Comptroller the amount of inheritance tax paid for each decedent for whom an amended Maryland estate tax return is filed with the Comptroller.

Md. Code, Tax - General § 7-305.1

§7–305.1. (a) This section does not apply to an amended estate tax return. (b) (1) Subject to § 13-601 of this article, the Comptroller may extend the time to file an estate tax return up to 6 months, or if the person required to file the estate tax return is out of the United States, up to 1 year. (2) An estate that is afforded a later due date for filing the federal estate tax return under the Internal Revenue Code shall be afforded the same later due date for filing the Maryland estate tax return. (3) A request for an extension of time to file the Maryland estate tax return shall be filed on a form prescribed by the Comptroller.

Md. Code, Tax - General § 7-306

(a) Except as provided in § 7–307 of this subtitle, the person responsible for filing the Maryland estate tax return under § 7–305 of this subtitle shall pay the Maryland estate tax to the Comptroller no later than 9 months after the date of the death of the decedent. (b) An extension of time to file the Maryland estate tax return granted by the Comptroller under § 7–305.1 of this subtitle does not extend the time for remitting the Maryland estate tax. (c) If an amended Maryland estate tax return is filed pursuant to § 7–305(d) of this subtitle, the person responsible for filing the amended Maryland estate tax return shall pay the additional Maryland estate tax developed on the amended Maryland estate tax return to the Comptroller when the amended Maryland estate tax return is filed with the Comptroller.

Md. Code, Tax - General § 7-307

(a) On application of the person responsible for paying the Maryland estate tax and subject to § 13–601 of this article, the Comptroller may allow an alternative payment schedule for the Maryland estate tax, notwithstanding any payment extension under § 6166 of the Internal Revenue Code. (b) The payment schedule may be in the form of: (1) a payment deferral; or (2) an installment payment plan. (c) (1) For each alternative payment schedule allowed under subsection (a) of this section, the Comptroller shall specify the procedures and guidelines, including: (i) conditions of eligibility; and (ii) 1. amount and duration of any payment deferral; or 2. amount of and scheduled time for any installment payments. (2) If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant. (d) (1) If an alternative payment schedule is allowed under subsection (a) of this section, the person responsible for filing the Maryland estate tax return under § 7–305 of this subtitle shall pay the tax in accordance with the schedule. (2) If the Maryland estate tax is paid in accordance with an alternative payment schedule allowed under subsection (a) of this section, a penalty for the late payment of the tax may not be assessed under § 13–701 of this article.

Md. Code, Tax - General § 7-308

(a) (1) In this section the following words have the meanings indicated. (2) “Fiduciary” means a personal representative or trustee. (3) “Person” includes any government, political subdivision, or governmental unit. (4) “Person interested in the estate” means any person who is entitled to receive or has received, from a decedent while alive or by reason of the death of a decedent, any property or interest in property included in the taxable estate of the decedent. (5) “Tax” means the federal estate tax and the Maryland estate tax and interest and penalties imposed in addition to the taxes. (b) (1) The tax shall be apportioned among all persons interested in the estate. Except as otherwise provided in this subsection, the apportionment shall be made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax shall be used for that purpose. (2) (i) If any part of the estate consists of property the value of which is deemed includible in the estate under § 7-309(b)(6) of this subtitle, the amount of Maryland estate tax apportioned to the person or persons receiving that property shall be the amount by which the total tax under this subtitle that has been paid exceeds the total tax under this subtitle that would have been payable if the value of that property had not been deemed includible in the estate. (ii) Any tax apportioned under this paragraph shall be apportioned among all persons receiving that property in the proportion that the value of the property received by each person bears to the total value of all such property. (c) (1) The court shall determine the apportionment of the tax. If there are no administration proceedings, the court of the county where the decedent was domiciled at death shall determine the apportionment of the tax on the application of the person required to pay the tax. (2) If the court finds that it is inequitable to apportion interest and penalties as provided in this section because of special circumstances, the court may direct apportionment in the manner that it finds equitable. (3) The expenses reasonably incurred by any fiduciary and by any other person interested in the estate in connection with the determination of the amount and apportionment of the tax shall be apportioned as provided in subsection (b) of this section and charged and collected as a part of the tax apportioned. If the court finds that it is inequitable to apportion the expenses as provided in subsection (b) of this section, the court may direct an equitable apportionment. (4) If the court finds that the assessment of penalties and interest assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest. (5) In any suit or judicial proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this section, the determination of the court is prima facie correct. (d) (1) The fiduciary or other person required to pay the tax may withhold, from any property of the decedent that is in the possession of the person and is distributable to any person interested in the estate, the amount of tax attributable to that person’s interest. If the property in the possession of the fiduciary or other person required to pay the tax and distributable to any person interested in the estate is insufficient to satisfy the proportionate amount of the tax determined to be due from the person, the fiduciary or other person required to pay the tax may recover the deficiency from the person interested in the estate. If the property is not in the possession of the fiduciary or other person required to pay the tax, the person may recover from any person interested in the estate the amount of the tax apportioned to that person in accordance with this section. (2) If property held by the fiduciary or other person required to pay the tax is distributed before the final apportionment of the tax, the person may require the distributee to provide a bond or other security for the apportionment liability in the form and amount required by the fiduciary or other person, with the approval of the court. (3) If the fiduciary or other person required to pay the tax transfers any property included in the estate to another person, other than a bona fide purchaser for value, the transferee is jointly and severally liable with the transferor for the amount of tax apportioned to the transferor under this section, less the value, at the time of the transfer, of any consideration given by the transferee for the property. (e) (1) In making an apportionment, allowances shall be made for any exemptions granted and for any deductions and credits allowed by the law imposing the tax. (2) Any exemption or reduction allowed by reason of the relationship of any person to the decedent or by reason of the purposes of the gift inures to the benefit of the person bearing that relationship or receiving the gift. If an interest is subject to a prior present interest that is not allowable as a deduction, the tax apportionable against the present interest shall be paid from principal. (3) Any credit for property previously taxed, any credit for state death taxes, and any credit for gift taxes or death taxes of a foreign country inure to the proportionate benefit of all persons liable to apportionment. (4) To the extent that property passing to or in trust for a surviving spouse or any charitable, public or similar gift or bequest is not an allowable deduction for purposes of the tax solely by reason of an inheritance tax or other death taxes imposed on and deductible from the property, the property is not included in the computation for which this section provides and, to that extent, an apportionment may not be made against the property. This paragraph does not apply if the result deprives the estate of a deduction otherwise allowable under § 2053 (d) of the Internal Revenue Code, relating to deduction for state death taxes on transfers for public, charitable or religious uses. (f) An interest in income, an estate for years, an estate for life, or any other temporary interest in any property or money is not subject to apportionment between the temporary interest and the remainder. The tax on the temporary interest and the tax, if any, on the remainder is chargeable against the corpus of the property or money subject to the temporary interest and remainder. (g) The fiduciary or other person required to pay the tax need not institute any suit or proceeding to recover from any person interested in the estate the amount of the tax apportioned to that person until the expiration of the 6 months next following the payment of any tax. If the fiduciary or other person required to pay the tax cannot collect from any person interested in the estate the amount of tax apportioned to the person, the amount not recoverable shall be equitably apportioned among the other persons interested in the estate who are subject to apportionment. (h) Subject to this subsection, a fiduciary acting in another state or a person required to pay the tax who is resident in another state may institute an action in a court of this State and may recover a proportionate amount of the federal estate tax or an estate tax payable to another state or of a death duty due by an estate to another state from a person interested in the estate who either is resident in this State or owns property in this State subject to attachment or execution. For the purpose of the action, the determination of apportionment by the court having jurisdiction of the administration of the estate in the other state is prima facie correct. This subsection applies only if the state in which the determination of apportionment was made affords a substantially similar remedy. (i) The provisions of this section that are uniform with statutes enacted in other states shall be construed to make uniform the laws of those states that enact the uniform provisions. (j) This section may be cited as the “Maryland Uniform Estate Tax Apportionment Act”. (k) Except as otherwise provided in the will or other controlling instrument, this section applies to the apportionment of, and contribution to, the federal and Maryland estate taxes.

Md. Code, Tax - General § 7-309

(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit under § 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before the passage of the Act of Congress shall apply with respect to a decedent who dies after the effective date of the Act of Congress so as to continue the Maryland estate tax in force without reduction in the same manner as if the federal credit had not been repealed or reduced. (b) (1) Except as provided in paragraphs (2) through (9) of this subsection and subsection (c) of this section, after the effective date of an Act of Congress described in subsection (a) of this section, the Maryland estate tax shall be determined using: (i) the federal credit allowable by § 2011 of the Internal Revenue Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of Congress; and (ii) other provisions of federal estate tax law as in effect on the date of the decedent’s death. (2) Except as provided in paragraphs (3) through (9) of this subsection and subsection (c) of this section, if the federal estate tax is not in effect on the date of the decedent’s death, the Maryland estate tax shall be determined using: (i) the federal credit allowable by § 2011 of the Internal Revenue Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of Congress; and (ii) other provisions of federal estate tax law as in effect on the date immediately preceding the effective date of the repeal of the federal estate tax. (3) (i) Notwithstanding any increase in the unified credit allowed against the federal estate tax for decedents dying after 2003, the unified credit used for determining the Maryland estate tax for a decedent may not exceed the applicable credit amount corresponding to an applicable exclusion amount, within the meaning of § 2010(c) of the Internal Revenue Code, of: 1. $1,000,000 for a decedent dying before January 1, 2015; 2. $1,500,000 for a decedent dying on or after January 1, 2015, but before January 1, 2016; 3. $2,000,000 for a decedent dying on or after January 1, 2016, but before January 1, 2017; 4. $3,000,000 for a decedent dying on or after January 1, 2017, but before January 1, 2018; 5. $4,000,000 for a decedent dying on or after January 1, 2018, but before January 1, 2019; and 6. $5,000,000 for a decedent dying on or after January 1, 2019, plus any deceased spousal unused exclusion amount calculated in accordance with paragraph (9) of this subsection. (ii) The Maryland estate tax shall be determined without regard to any deduction for State death taxes allowed under § 2058 of the Internal Revenue Code. (iii) Unless the federal credit allowable by § 2011 of the Internal Revenue Code is in effect on the date of the decedent’s death, the federal credit used to determine the Maryland estate tax may not exceed 16% of the amount by which the decedent’s taxable estate, as defined in § 2051 of the Internal Revenue Code, exceeds: 1. $1,000,000 for a decedent dying before January 1, 2015; 2. $1,500,000 for a decedent dying on or after January 1, 2015, but before January 1, 2016; 3. $2,000,000 for a decedent dying on or after January 1, 2016, but before January 1, 2017; 4. $3,000,000 for a decedent dying on or after January 1, 2017, but before January 1, 2018; 5. $4,000,000 for a decedent dying on or after January 1, 2018, but before January 1, 2019; and 6. $5,000,000 for a decedent dying on or after January 1, 2019, plus any deceased spousal unused exclusion amount calculated in accordance with paragraph (9) of this subsection. (4) (i) With regard to an election to value property as provided in § 2032 of the Internal Revenue Code, if a federal estate tax return is not required to be filed: 1. an irrevocable election made on a timely filed Maryland estate tax return shall be deemed to be an election as required by § 2032(d) of the Internal Revenue Code; 2. the provisions of § 2032(c) of the Internal Revenue Code do not apply; and 3. an election may not be made under item 1 of this subparagraph unless that election will decrease: A. the value of the gross estate; and B. the Maryland estate tax due with regard to the transfer of a decedent’s Maryland estate. (ii) An election to value property as provided in § 2032 of the Internal Revenue Code for Maryland estate tax purposes must be the same as the election made for federal estate tax purposes. (5) (i) With regard to an election to treat property as marital deduction qualified terminable interest property in calculating the Maryland estate tax, an irrevocable election made on a timely filed Maryland estate tax return shall be deemed to be an election as required by § 2056(b)(7)(B)(i), (iii), and (v) of the Internal Revenue Code. (ii) An election under this paragraph made on a timely filed Maryland estate tax return shall be recognized for purposes of calculating the Maryland estate tax even if an inconsistent election is made for the same decedent for federal estate tax purposes. (6) (i) For purposes of calculating Maryland estate tax, a decedent shall be deemed to have had a qualifying income interest for life under § 2044(a) of the Internal Revenue Code with regard to any property for which a marital deduction qualified terminable interest property election was made for the decedent’s predeceased spouse on a timely filed Maryland estate tax return under paragraph (5) of this subsection. (ii) For the purpose of apportioning Maryland estate tax under § 7–308 of this subtitle, any property as to which a decedent is deemed to have had a qualifying income interest for life under subparagraph (i) of this paragraph shall be deemed to be included in both the estate and the taxable estate of the decedent. (7) For purposes of calculating Maryland estate tax, amounts allowable under § 2053 or § 2054 of the Internal Revenue Code as a deduction in computing the taxable estate of a decedent may not be allowed as a deduction or as an offset against the sales price of property in determining gain or loss if the amount has been allowed as a deduction in computing the federal taxable income of the estate or of any other person. (8) Notwithstanding any contrary definition of “marriage” and “spouse” under any applicable provision of federal law, for purposes of calculating Maryland estate tax under this subsection, the surviving “spouse” of a decedent shall include any individual to whom, at the time of the decedent’s death, the decedent was lawfully married as determined under the laws of the State. (9) (i) In this paragraph, “deceased spousal unused exclusion amount” means the applicable exclusion amount in effect at the time of the death of the last predeceased spouse of the decedent under paragraph (3) of this subsection reduced by the taxable estate of the last predeceased spouse: 1. as reported on a Maryland estate tax return filed with the Comptroller; or 2. as reported on a federal estate tax return, if: A. the last predeceased spouse was not a Maryland resident and no property with a Maryland estate tax situs was includible in the gross estate of the last predeceased spouse; or B. the last predeceased spouse died before January 1, 2019, and no Maryland estate tax return was required to be filed with respect to the predeceased spouse’s estate. (ii) The deceased spousal unused exclusion amount may not be taken into account under paragraph (3) of this subsection unless: 1. if the last predeceased spouse died on or after January 1, 2019, a Maryland estate tax return is timely filed for the last predeceased spouse, on which the deceased spousal unused exclusion amount is calculated and an irrevocable election is made that the deceased spousal unused exclusion amount may be taken into account; or 2. if the last predeceased spouse died before January 1, 2019, or was not a Maryland resident and no property with a Maryland estate tax situs was includible in the gross estate of the last predeceased spouse, an election was made under § 2010(c) of the Internal Revenue Code on the federal estate tax return of the last predeceased spouse. (iii) 1. Notwithstanding any other provision of this article, the Comptroller may examine a Maryland estate tax return of a predeceased spouse after the time for assessing a tax under this title has expired under § 13–1101 of this article solely for the purposes of determining the validity of the deceased spousal unused exclusion election and the amount to be taken into account under paragraph (3) of this subsection. 2. This subparagraph may not be construed to authorize the assessment of any additional tax with respect to the predeceased spouse’s Maryland estate tax return if the period of limitation under § 13–1101 of this article has expired. (c) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of the Internal Revenue Code. (iii) “Qualified agricultural property” means real or personal property that is used primarily for farming purposes. (iv) “Qualified recipient” means an individual who enters into an agreement to use qualified agricultural property for farming purposes after the decedent’s death. (2) The Maryland estate tax shall be determined by excluding from the value of the gross estate up to $5,000,000 of the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient. (3) If the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient exceeds $5,000,000, the Maryland estate tax imposed on the Maryland estate of the decedent may not exceed the sum of: (i) 16% of the amount by which the decedent’s taxable estate, excluding the value of all qualified agricultural property that passes from the decedent to or for the use of a qualified recipient, exceeds the applicable exclusion amount specified under subsection (b) of this section; and (ii) 5% of the amount by which the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient exceeds $5,000,000. (4) (i) The Maryland estate tax shall be recaptured as provided in this paragraph if, within 10 years after the decedent’s death, the qualified agricultural property ceases to be used for farming purposes. (ii) The amount of the estate tax imposed under this paragraph shall be the additional Maryland estate tax that would have been payable at the time of the decedent’s death but for the provisions under paragraphs (2) and (3) of this subsection. (5) The Comptroller shall adopt regulations to implement this subsection.

Md. Code, Tax - General § 7-401

(a) In this subtitle the following words have the meanings indicated. (b) “Federal credit” means: (1) the maximum allowable credit for State taxes under § 2604 of the Internal Revenue Code against the federal generation-skipping transfer tax; less (2) the amount that bears the same ratio to the maximum allowable credit as the value of the generation-skipping transfer taxable by all other states bears to the total value of the generation-skipping transfer. (c) “Federal generation-skipping transfer tax” means the tax imposed by § 2601 of the Internal Revenue Code. (d) “Generation-skipping transfer” means a transfer subject to the federal generation-skipping transfer tax. (e) “Original transferor” means an individual who makes a transfer of property that results in the imposition of the federal generation-skipping transfer tax.

Md. Code, Tax - General § 7-402

(a) Except as provided in subsection (b) of this section, a tax is imposed on a generation-skipping transfer that occurs at the same time and as a result of the death of an individual, if: (1) the original transferor was a resident of this State on the date of the original transfer; or (2) (i) the original transferor was not a resident of this State on the date of the original transfer; and (ii) the generation-skipping transfer includes property having a situs in this State. (b) The Maryland generation-skipping transfer tax does not apply to a direct skip, as defined under § 2612 of the Internal Revenue Code.

Md. Code, Tax - General § 7-404

The value of property included in a generation-skipping transfer is the same value as determined under Chapter 13 of the Internal Revenue Code.

Md. Code, Tax - General § 7-405

(a) The person required to file a federal generation-skipping transfer tax return on which a federal credit is allowable shall complete and file a Maryland generation-skipping transfer tax return with the Comptroller on or before the last day for filing the federal return. (b) If, after a person files a Maryland generation-skipping transfer tax return, the federal generation-skipping transfer tax is increased, the person shall complete and file an amended return with the Comptroller when the additional federal tax is paid.

Md. Code, Tax - General § 7-406

The person required to pay the federal generation-skipping transfer tax shall pay the Maryland generation-skipping transfer tax to the Comptroller on or before the last day for filing a Maryland generation-skipping transfer tax return.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026