60 Plus  State Inheritance Tax Page

Maryland Inheritance Tax is Repealed for Direct Heirs and Siblings

Besides fighting to repeal the federal estate tax, or "death tax" as it is commonly called, the 60 Plus Association has been a leader in the effort to repeal inheritance taxes on the state level as well.  In fact, 60 Plus President Jim Martin has testified before both the Maryland and Pennsylvania state legislatures for repeal of their respective inheritance taxes.  60 Plus has been extremely successful in Maryland where the tax has just recently been repealed (4/10/00) for direct heirs and siblings. We have only just begun in Pennsylvania; however, if our results are similar to that in Maryland, Pennsylvania will join the long list of states without an inheritance tax.

     Maryland

60 Plus President Jim Martin along with 60 Plus' Maryland representative, Steve Lakin, orchestrated the first ever effort to repeal the inheritance tax in Maryland.  Because this was never done before, it was an uphill climb.  However, the results were AMAZING!  Jim and Steve got a Democrat, Delegate Obie Patterson (D-26/Ft. Washington) to sponsor legislation (HB 982) to repeal Maryland's inheritance tax.  Jim Martin testified before the State House Ways & Means Committee on March 11, 1999 as well as the Senate Budget and Taxation Committee in favor of repeal.  Nevertheless, HB 982 was killed in Committee.  

Recently, Maryland's inheritance tax has been getting a lot of attention, thanks in part to 60 Plus' and Steve Lakin's efforts.  Major government officials in Maryland emphasized that the inheritance tax must go!  Senate President Thomas V. Mike Miller and House Speaker Casper Taylor both  supported legislation for repeal of the inheritance tax.  Even Governor Parris Glendening joined in the support for repeal or a substantial cut in the tax.  And when the 2000 Maryland legislative session concluded on April 10th, the inheritance tax was repealed for lineal heirs and siblings only.  However, 60 Plus supports TOTAL REPEAL and will continue to fight until this is in fact the case. 

This effort shows that repealing both estate and inheritance taxes is truly a bi-partisan effort.  Both Democrats and Republicans in the Maryland State Legislature supported repeal of the tax.  Although inheritance/estate taxes have traditionally been a Republican talking point, this effort demonstrates that this is not true.  

Maryland Coalition to Repeal the Inheritance Tax

 

     Pennsylvania

Encouraged by our efforts in Maryland, the 60 Plus Association set out to do the same in Maryland's neighbor to the north, Pennsylvania.  

This time, 60 Plus President Jim Martin worked with PA State Senator Melissa Hart, who is Chairman of the Senate Finance Committee, to reduce the tax burden put on descendants.  Jim Martin testified before the Committee on July 23rd of last year for Senate Bill 185, which would reduce the inheritance tax on transfers to siblings from 15% to 6%.  Although 60 Plus emphasizes total repeal, this is definitely a step in the right direction.  Now, inheritance tax repeal is being discussed in Pennsylvania thanks to the efforts of 60 Plus and Senator Hart.  Click here to see text of the testimony. 

Other States that have Inheritance Taxes:

Grabbiest States (states with inheritance tax and high income taxes)

  • Indiana

  • Kentucky

  • Mississippi

  • Montana

  • Nebraska

  • New York

  • Ohio

** Pennsylvania is part of the Grabbiest States

Better, but still not good enough (states with inheritance taxes but lower income taxes)

  • Connecticut (will be phased out in 2000)

  • Iowa

  • Louisiana (will be phased out in 2002)

  • New Jersey

  • New Hampshire

  • Oklahoma

  • South Dakota 

  • Tennessee

(Source: Forbes Magazine, June 14, 1999)

 

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