MD
Maryland Senate Bill SB55

Maryland 2023 Regular Session

Maryland Senate Bill SB55 Compare Versions

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1- WES MOORE, Governor Ch. 713
21
3-– 1 –
4-Chapter 713
5-(Senate Bill 55)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0055*
810
9-Maryland Estate Tax – Portability – Time Period for Election
11+SENATE BILL 55
12+Q7 (3lr0809)
13+ENROLLED BILL
14+— Budget and Taxation/Ways and Means —
15+Introduced by Senator West
1016
11-FOR the purpose of altering the period of time within which a person is required to file a
12-Maryland estate tax return for the purpose of allowing a surviving spouse to take
13-into account the deceased spousal unused exclusion amount; applying this Act
14-retroactively; and generally relating to the Maryland estate tax.
17+Read and Examined by Proofreaders:
1518
16-BY repealing and reenacting, with amendments,
17- Article – Tax – General
18-Section 7–305
19- Annotated Code of Maryland
20- (2022 Replacement Volume)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2123
22- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
23-That the Laws of Maryland read as follows:
24+Sealed with the Great Seal and presented to the Governor, for his approval this
2425
25-Article – Tax – General
26+_______ day of _______________ at _________________ _______ o’clock, ________M.
2627
27-7–305.
28+______________________________________________
29+President.
2830
29- (a) If a federal estate tax return is required to be filed, the person responsible for
30-filing the federal estate tax return shall complete, under oath, and file a Maryland estate
31-tax return with the Comptroller 9 months after the date of the death of a decedent.
31+CHAPTER ______
3232
33- (b) If a federal estate tax return is not required to be filed but a federal estate tax
34-return would be required to be filed if the applicable exclusion amount under § 2010(c) of
35-the Internal Revenue Code were no greater than the applicable exclusion amount specified
36-under § 7–309(b) of this subtitle, the person who would be responsible for filing the federal
37-estate tax return shall complete, under oath, and file a Maryland estate tax return with
38-the Comptroller 9 months after the date of the death of the decedent.
33+AN ACT concerning 1
3934
40- (c) (1) If a person files a Maryland estate tax return solely for the purpose of
41-making the election under § 7–309(b) of this subtitle to allow a surviving spouse to take
42-into account the deceased spousal unused exclusion amount, the person shall file the
43-Maryland estate tax return within [2 years after the date of death of the decedent] THE
44-TIME PERIOD PRESCRIB ED FOR MAKING AN ELE CTION ON A FEDERA L ESTATE TAX
45-RETURN TO ALLOW A SU RVIVING SPOUSE TO TA KE INTO ACCOUNT THE DECEASED
46-SPOUSAL UNUSED EXCLU SION AMOUNT .
47- Ch. 713 2023 LAWS OF MARYLAND
35+Maryland Estate Tax – Portability – Time Period for Election 2
4836
49-– 2 –
50- (2) THE COMPTROLLER SHALL ADO PT REGULATIONS NECES SARY TO
51-ENSURE THAT THE TIME PERIOD FOR MAKING TH E ELECTION UNDER § 7–309(B) OF
52-THIS SUBTITLE ON A MARYLAND ESTATE TAX R ETURN IS IDENTICAL T O THAT FOR A
53-SIMILARLY SITUATED F EDERAL ESTATE TAX RE TURN.
37+FOR the purpose of altering the period of time within which a person is required to file a 3
38+Maryland estate tax return for the purpose of allowing a surviving spouse to take 4
39+into account the deceased spousal unused exclusion amount; applying this Act 5
40+retroactively; and generally relating to the Maryland estate tax. 6
5441
55- (d) (1) After a person files a Maryland estate tax return, the person shall file
56-an amended Maryland estate tax return with the Comptroller if the Maryland estate tax
57-liability is increased because of:
42+BY repealing and reenacting, with amendments, 7
43+ Article – Tax – General 8
44+Section 7–305 9
45+ Annotated Code of Maryland 10
46+ (2022 Replacement Volume) 11
5847
59- (i) a change in the federal gross estate, federal taxable estate,
60-federal estate tax, or other change as determined under the Internal Revenue Code;
48+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
49+That the Laws of Maryland read as follows: 13 2 SENATE BILL 55
6150
62- (ii) after–discovered property;
6351
64- (iii) a correction to the value of previously reported property;
6552
66- (iv) a correction to the amount of previously claimed deductions; or
53+Article – Tax – General 1
6754
68- (v) any other correction to a previously filed return.
55+7–305. 2
6956
70- (2) (i) The amended return shall be filed within 90 days after the later
71-to occur of the date of the event that caused the increase in the Maryland estate tax liability
72-or the date on which the person required to file an amended Maryland estate tax return
73-learned or reasonably should have learned of the increase in the Maryland estate tax
74-liability.
57+ (a) If a federal estate tax return is required to be filed, the person responsible for 3
58+filing the federal estate tax return shall complete, under oath, and file a Maryland estate 4
59+tax return with the Comptroller 9 months after the date of the death of a decedent. 5
7560
76- (ii) On request, each register shall certify to the Comptroller the
77-amount of inheritance tax paid for each decedent for whom an amended Maryland estate
78-tax return is filed with the Comptroller.
61+ (b) If a federal estate tax return is not required to be filed but a federal estate tax 6
62+return would be required to be filed if the applicable exclusion amount under § 2010(c) of 7
63+the Internal Revenue Code were no greater than the applicable exclusion amount specified 8
64+under § 7–309(b) of this subtitle, the person who would be responsible for filing the federal 9
65+estate tax return shall complete, under oath, and file a Maryland estate tax return with 10
66+the Comptroller 9 months after the date of the death of the decedent. 11
7967
80- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to
81-apply retroactively and shall be applied to and interpreted to affect any decedents dying on
82-or after July 1, 2018 January 1, 2019.
68+ (c) (1) If a person files a Maryland estate tax return solely for the purpose of 12
69+making the election under § 7–309(b) of this subtitle to allow a surviving spouse to take 13
70+into account the deceased spousal unused exclusion amount, the person shall file the 14
71+Maryland estate tax return within [2 years after the date of death of the decedent] THE 15
72+TIME PERIOD PRESCRIB ED FOR MAKING AN ELE CTION ON A FEDE RAL ESTATE TAX 16
73+RETURN TO ALLOW A SU RVIVING SPOUSE TO TA KE INTO ACCOUNT THE DECEASED 17
74+SPOUSAL UNUSED EXCLU SION AMOUNT . 18
8375
84- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
85-1, 2023.
76+ (2) THE COMPTROLLER SHALL ADO PT REGULATIONS NECES SARY TO 19
77+ENSURE THAT THE TIME PERIOD FOR MAKING TH E ELECTION UNDER § 7–309(B) OF 20
78+THIS SUBTITLE ON A MARYLAND ESTATE TAX R ETURN IS IDENTICAL T O THAT FOR A 21
79+SIMILARLY SITUATED F EDERAL ESTATE TAX RE TURN. 22
8680
87-Approved by the Governor, May 16, 2023.
81+ (d) (1) After a person files a Maryland estate tax return, the person shall file 23
82+an amended Maryland estate tax return with the Comptroller if the Maryland estate tax 24
83+liability is increased because of: 25
84+
85+ (i) a change in the federal gross estate, federal taxable estate, 26
86+federal estate tax, or other change as determined under the Internal Revenue Code; 27
87+
88+ (ii) after–discovered property; 28
89+
90+ (iii) a correction to the value of previously reported property; 29
91+
92+ (iv) a correction to the amount of previously claimed deductions; or 30
93+
94+ (v) any other correction to a previously filed return. 31
95+
96+ (2) (i) The amended return shall be filed within 90 days after the later 32
97+to occur of the date of the event that caused the increase in the Maryland estate tax liability 33 SENATE BILL 55 3
98+
99+
100+or the date on which the person required to file an amended Maryland estate tax return 1
101+learned or reasonably should have learned of the increase in the Maryland estate tax 2
102+liability. 3
103+
104+ (ii) On request, each register shall certify to the Comptroller the 4
105+amount of inheritance tax paid for each decedent for whom an amended Maryland estate 5
106+tax return is filed with the Comptroller. 6
107+
108+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 7
109+apply retroactively and shall be applied to and interpreted to affect any decedents dying on 8
110+or after July 1, 2018 January 1, 2019. 9
111+
112+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take e ffect July 10
113+1, 2023. 11
114+
115+
116+
117+
118+
119+Approved:
120+________________________________________________________________________________
121+ Governor.
122+________________________________________________________________________________
123+ President of the Senate.
124+________________________________________________________________________________
125+ Speaker of the House of Delegates.