Assembly Leaders Back Cutting Estate Taxes, But Opponents Knock Break For Wealthy

General Assembly leaders say they are fearful wealthy Maryland residents are moving out of state because of Maryland’s high estate tax and are promoting legislation that would cut the “death tax”

Maryland imposes a tax when property is transferred from the deceased to a living relative, if that property is valued at more than $1 million — the tax caps at 16% of the entire estate.

Senate President Mike Miller is one of the lawmakers spearheading legislation — along with House Speaker Michael Busch — that would reduce the death tax. Miller said he wants to recouple it to the federal limits, matching the federal exclusion level of $5.3 million.

Miller testified on his bill, SB 602, to the Senate Budget and Taxation Committee Wednesday. Maryland citizens ages 55 and older, one of the wealthiest sectors of the state, he said, are “fleeing” to Virginia, Delaware, Florida to avoid being taxed.

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