EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0055*
SENATE BILL 55
Q7 3lr0809
(PRE–FILED) CF 3lr1206
By: Senator West
Requested: November 15, 2022
Introduced and read first time: January 11, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Maryland Estate Tax – Portability – Time Period for Election 2
FOR the purpose of altering the period of time within which a person is required to file a 3
Maryland estate tax return for the purpose of allowing a surviving spouse to take 4
into account the deceased spousal unused exclusion amount; applying this Act 5
retroactively; and generally relating to the Maryland estate tax. 6
BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 7–305 9
Annotated Code of Maryland 10
(2022 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Tax – General 14
7–305. 15
(a) If a federal estate tax return is required to be filed, the person responsible for 16
filing the federal estate tax return shall complete, under oath, and file a Maryland estate 17
tax return with the Comptroller 9 months after the date of the death of a decedent. 18
(b) If a federal estate tax return is not required to be filed but a federal estate tax 19
return would be required to be filed if the applicable exclusion amount under § 2010(c) of 20
the Internal Revenue Code were no greater than the applicable exclusion amount specified 21
under § 7–309(b) of this subtitle, the person who would be responsible for filing the federal 22
estate tax return shall complete, under oath, and file a Maryland estate tax return with 23
the Comptroller 9 months after the date of the death of the decedent. 24 2 SENATE BILL 55
(c) (1) If a person files a Maryland estate tax return solely for the purpose of 1
making the election under § 7–309(b) of this subtitle to allow a surviving spouse to take 2
into account the deceased spousal unused exclusion amount, the person shall file the 3
Maryland estate tax return within [2 years after the date of death of the decedent] THE 4
TIME PERIOD PRESCRIB ED FOR MAKING AN ELE CTION ON A FEDERAL E STATE TAX 5
RETURN TO ALLOW A SU RVIVING SPOUSE TO TA KE INTO ACCOUNT THE DECEASED 6
SPOUSAL UNUSED EXCLU SION AMOUNT . 7
(2) THE COMPTROLLER SHALL ADO PT REGULATIONS NECES SARY TO 8
ENSURE THAT THE TIME PERIOD FOR MAKING THE ELECTION UNDER § 7–309(B) OF 9
THIS SUBTITLE ON A MARYLAND ESTATE TAX R ETURN IS IDENTICAL TO THAT FOR A 10
SIMILARLY SITUATED FEDERAL ESTATE TAX R ETURN. 11
(d) (1) After a person files a Maryland estate tax return, the person shall file 12
an amended Maryland estate tax return with the Comptroller if the Maryland estate tax 13
liability is increased because of: 14
(i) a change in the federal gross estate, federal taxable estate, 15
federal estate tax, or other change as determined under the Internal Revenue Code; 16
(ii) after–discovered property; 17
(iii) a correction to the value of previously reported property; 18
(iv) a correction to the amount of previously claimed deductions; or 19
(v) any other correction to a previously filed return. 20
(2) (i) The amended return shall be filed within 90 days after the later 21
to occur of the date of the event that caused the increase in the Maryland estate tax liability 22
or the date on which the person required to file an amended Maryland estate tax return 23
learned or reasonably should have learned of the increase in the Maryland estate tax 24
liability. 25
(ii) On request, each register shall certify to the Comptroller the 26
amount of inheritance tax paid for each decedent for whom an amended Maryland estate 27
tax return is filed with the Comptroller. 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 29
apply retroactively and shall be applied to and interpreted to affect any decedents dying on 30
or after July 1, 2018. 31
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
1, 2023. 33