Maryland Estate Tax Legislation Update
Monday, March 10th, 2014
On Friday, the Third Reading of House Bill 739, regarding an increase in the estate tax exemption amount, passed the Maryland House of Delegates by a vote of 119-14. This bill is different from the one we highlighted a few weeks ago in the following ways:
- The increase in assets subject to estate tax would not be retroactive to January 1, 2014, but would increase for decedent’s estates after January 1, 2015.
- Instead of increasing the estate tax exemption amount in intervals of $750,000 per year, the tax would increase at intervals of $500,000 per year.
- The change in the rate of increase affects the date at which the estate tax would be re-coupled with the federal estate tax. Instead of re-coupling on January 1, 2017, it would be delayed until January 1, 2019.
The Senate has not yet voted on the cross-filed bill, Senate Bill 602. In addition, the language of the Senate bill has not been updated to match the Third Reading language of House Bill 739.