GOP Senators Continue Effort to Reduce Estate Taxes 2-27-09

One of Maryland's most onerous taxes is the state estate tax.  In 2002, the Democrat leadership in the Maryland General Assembly "decoupled" the Maryland estate tax from the federal estate tax in order to limit loss of tax state revenue as the federal law passed in 2001 allowed increasing estate values to be exempt from federal tax. 

This decoupling created a system that is very confusing for the survivors of Maryland residents because Maryland now assesses an estate tax on many estates that are not subject to a federal estate tax.  Maryland now taxes the value of estate assets over $1 million; the federal estate tax only applies to the value of estate assets over $3.5 million.

Senator Janet Greenip (R - Anne Arundel) has introduced legislation to "re-couple" the state estate tax to the federal estate tax.  This would exempt many Maryland's citizens from this burdensome tax after the loss of a loved one.

In announcing introduction of this bill, Senator Greenip said, “Estate tax relief is important to Maryland’s families.  Our state’s high estate tax has placed a real burden on Maryland’s farmers, small business owners, and middle-class homeowners.  In this economic downturn, we need to help as many of our citizens as we can and this bill is long overdue for passage” 

To review Senator Greenip's legislation Senate Bill 675 - Maryland Death Taxes - Family Property Protection Act, click here.