MD Delegates Pass a Bill to Raise Estate Tax Exemption

With a bipartisan vote of 120 to 13, the Maryland House of Delegates passed a bill this past Friday to raise the estate tax exemption threshold over the next five years to match the federal level of $5.34 million. The finalized legislation proposes an annual increase in the estate tax exemption level, beginning on Jan. 1, 2015, in amounts of $1.5 million, $2 million, $3 million and $4 million before reaching the federal level by Jan. 1, 2019. The Senate Budget and Taxation Committee has not yet voted on the bill, but will most likely do so in the coming weeks. If passed by the Senate, the legislation will go to Governor Martin O’Malley, who has not yet indicated whether he will veto the bill or sign it into law.