In an effort to ensure Maryland’s millionaires don’t flee the state for cheaper pastures, the General Assembly approved Thursday a cut to the state’s estate tax.
After spirited debate and a 36-10 vote from the Senate, the bill was sent to Gov. Martin O’Malley, who is likely to sign the bill.
The bill recouples Maryland to the federal estate tax exemptions. The state’s estate tax ceiling would go up incrementally, capping at the federal exclusion level of $5.3 million by 2017. Under current state law, any assets worth $1 million or more are taxed after their owner dies.