MAINE INHERITANCE AND ESTATE TAXES Inheritance Tax Tax imposed. An inheritance tax is imposed upon the property hereinafter mentioned. Except as otherwise provided this tax is imposed upon the value of the property at the death of the decedent. (2) Transfers taxable. This tax applies to all property within the jurisdiction of this State and any interest therein belonging to inhabitants of this State, and all real estate or any interest therein and all tangible personal property within the State belonging to persons who are not inhabitants of this State which passes by will, by laws regulating intestate succession or by allowance of a judge of probate; by deed, grant, sale, or gift, except in case of a bona fide purchase, made in contemplation of the death of the grantor or donor, or made or intended to take effect in possession or enjoyment after such death to any person in trust or otherwise; and property passing to a joint owner under the doctrine of survivorship. Property subject to this tax includes also all proceeds of life insurance policies payable to decedent's executors or administrators, except, if testate, such part thereof as is bequeathed to a widow, widower, or issue; or, if intestate, such part as descends thereto. (2) Exemptions. Property passing to or for the use of any charitable, educational, religious, or benevolent institution in this State, or to or for the use of this State or of any county, town, or municipal subdivision therein for public purposes, is exempt from this tax. The following personal exemptions are allowed: Husband, wife, father, mother, child, adopted child, or adoptive parent, $10,000, and $500 for any other person falling in class A; beneficiaries of classes B and C, $500 each. (2,3,4,5) Classification of beneficiaries.-The beneficiaries under this act are classified as follows: Class A: Husband, wife, lineal ancestor, lineal descendant, adopted child, or adoptive parent, wife or widower of a son or husband or widower of a daughter, of decedent. Class B: Brother or sister, including those of the half blood, uncle, aunt, nephew, niece, grandnephew, grandniece, or cousin, of decedent. Class C: All other persons not falling within classes B or C. (3, 4, 5) Rates of tax. The rates of tax imposed on the several classes of beneficiaries upon the value of the property passing, but in excess of the exemptions allowed, are as follows: (3, 4, 5) (52) Payment of tax; interest. This tax is payable to the inheritance tax commissioner at the expiration of 15 months from date of decedent's death; but if legacies or distributive shares are paid within said period, the tax is payable at the same time. The commissioner is empowered to extend the time for payment. If the taxes are not paid when due, interest thereon is charged at the rate of 10 percent per annum from the due date. (15,16) Tax lien. Property of which a decedent dies seized or possessed, subject to this tax and property acquired in substitution therefor, is charged with a lien for all taxes and interest thereon which are or may become due thereon. Said lien, however, does not attach to personal property after the same has been sold or disposed of for value, or to real estate after it has been conveyed under license of the probate court. (17) Securing payment of taxes due other States. Provisions exist in this law requiring executors and administrators to file proof that all death taxes, interest, and penalties due the State of domicile of a nonresident decedent have been paid or secured. These provisions are applicable only in the event the laws of said State of domicile contain a provision whereby the payment of similar taxes, interest, and penalties due this State is reasonably assured. (Ch. 147–1933) Disposition of proceeds. The proceeds of this tax are for the use of the State. (2) Administration of act.-The administration and enforcement of this act is vested in the attorney general, who is authorized to commission one of his assistants as inheritance tax commissioner. (1) Sources of information.-Chapters 147 and 148, Session Laws of 1933. Estate Tax Tax imposed.-There is assessed, in addition to the inheritance tax, an estate tax upon all estates subject to taxation under the Federal Revenue Act of 1926.2 (36) Transfers taxable. This tax is imposed upon the transfer of the estate of every person who, at the time of his death, was a resident of this State. This tax is imposed also upon the transfer of all real property or tangible personal property situated within this State and passing by reason of the death of a nonresident. (36) Rate. The amount of this tax is the amount by which 80 percent of the estate tax payable to the United States under the provisions of said revenue act exceed the aggregate amount of all estate, inheritance, legacy, and succession taxes actually paid to the several States in respect of any property owned by such decedent, or subject to such taxes as a part of or in connection with his estate. The amount of tax The provisions of law relating to this tax are shown on p. 7. imposed upon the estate of nonresidents is the amount by which 80 percent of the estate tax payable to the United States by reason of the transfer of such property exceeds the aggregate of the taxes payable thereon under the inheritance tax provisions. (36) Payment of tax; interest.—Same provisions relating to time of payment, interest, and extension of time as apply to the inheritance tax. (37) Intent of act. The intent and purpose of the provisions imposing this estate tax is to obtain for this State the benefit of the credit allowed under the Federal Revenue Act of 1926. (38) Inheritance tax law applicable. All of the above provisions relating to the inheritance tax apply to this estate tax wherever the same are applicable. (40) Source of information.-Chapter 148, Session Laws of 1933. MARYLAND INHERITANCE AND ESTATE TAXES Inheritance Tax Tax imposed. An inheritance tax is imposed upon estates passing from decedents at the rates, and subject to the exemptions hereinafter shown. (104A) Transfers taxable. The property taxable under this act includes all estates, real, personal, or mixed, money, public and private securities of every kind passing from any person dying seized and possessed thereof, being in this State, either by will or under the intestate laws of this State, or any part of the same, transferred by deed, grant, bargain, gift, or sale, made or intended to take effect in possession after the death of the grantor, bargainor, devisor, or donor, to or for the use of, in trust or otherwise, the beneficiaries hereinafter mentioned, but subject to the exemptions allowed. (104A) Exemptions. The following estates and property are exempt from this tax: All estates valued at less than $500; all estates passing to this State, or to any county or city of this State by escheat or otherwise; not exceeding the sum of $500 bequeathed for the perpetual upkeep of a grave or graves. (104A, 105) Classification of beneficiaries.-The beneficiaries under this act are classified as follows: Class A: Father, mother, husband, wife, children, or lineal descendants, of decedent. Class B: All others. (104A, 105) Rates of tax.-Class A beneficiaries are taxed at the rate of 1 percent on every $100 of the clear value of the estate or property passing thereto; class B beneficiaries, 71⁄2 percent. (104A, 105) Same. The tax imposed hereunder applies to all tangible or intangible property, real or personal, passing either by will or under the intestate laws of this State, or by deed, gift, grant, bargain, or sale, made in contemplation of death, or intended to take effect in possession at or after the death of a decedent, including property in which the decedent, prior to his death, had an interest as joint tenant or tenant in common, and including property over which the decedent retained any dominion during his lifetime, except interest of a surviving spouse in any free-share account in any building or homestead association or in any moneys on deposit in the names of husband and wife passing to such surviving spouse; but no legacy or bequest the value of which does not exceed $100 is taxable hereunder. (105A) Payment of tax. This tax is payable to the register of wills of the proper county within 13 months from the date the executor receives his administration. If the tax is not so paid, the orphans' court of the county requires the executor to sell so much of the real estate as may be necessary to pay the tax and expenses of said sale. (106, 108, 116) Tax lien. The amount of tax is a lien on the real estate for the period of 4 years from the date of death of the decedent who dies seized and possessed thereof. (115) Taxes due other States.-Every executor or administrator of the estate of a nonresident decedent is required, before being given his final accounting or discharge, to file proof that all inheritance, estate, and similar taxes due decedent's State of domicile, or any political subdivision thereof, have been paid or secured, or a consent by the proper taxing authorities of such State to such final accounting or discharge. The provisions of this paragraph are applicable only if the laws of decedent's State of domicile contain a provision whereby this State is given reasonable assurance of the collection of its inheritance, estate, and similar taxes from estates of decedents dying domiciled in this State, but whose estates are administered in such other State. (132A) Disposition of proceeds. The proceeds of this tax are paid to the State treasurer. (131) Administration of act. The provisions of this act are administered by the orphans' courts of the several counties. (109) Sources of information.-Article 81, 1935 Supplement, Annotated Code (1924) of Maryland; Chapter 124, Special Session, 1936; Chapter 189, Session Laws, 1937. Estate Tax Tax imposed. In addition to the inheritance tax imposed under the above provisions, an estate tax is imposed upon the transfer of the Maryland estate of every decedent, the amount of which estate tax is equal to the extent, if any, of the excess of the credit over the aggregate of State taxes payable by or out of the Maryland estate of the decedent or any part thereof. ̄ (2) Payment of tax. This estate tax is payable to the State comptroller at the same time at which the Federal estate tax is payable, and it bears interest, if any, at the same rate and for the same period as such Federal estate tax.2 Amounts so received by the comptroller are paid to the State treasurer. (3, 4) Source of information.-Article 62A, 1935 Supplement, Annotated Code (1924) of Maryland. Excise tax on income from foreign fiduciaries.-Residents of this State who derive income from intangible personal property of the classes enumerated in the paragraph next following, held in trust for them or for their use by any trustee or other fiduciary not a resident of this State, where the donor or testator creating such trust, is or was, at the time of such creation, a resident of this State, are subject to an excise tax at the rate of 6 percent of the net amount of such income received by them during each fiscal year. Beneficiaries receiving such income report to the local assessing bodies of their respective places of residence, and said bodies transmit the information to the State tax commission, which determines the base upon which this tax is imposable and imposes the tax. This tax is collected by the local tax collector and distributed by him as follows: Onethird to the State and two-thirds to the county or Baltimore City where the beneficiary resides; but if residence is in a city or town located within a county, such two-thirds is equally divided between such city or town and such county. (141A) Intangibles taxable. The classes of intangible personal property taxable under the provisions of the paragraph next preceding are: All interest-bearing bonds, certificates of indebtedness or evidence of The provisions of law relating to this tax are shown on p. 7. |