2013 Maryland Code
TAX - GENERAL
§ 7-307 - Alternative payment schedule [Amendment subject to abrogation]

§7-307. IN EFFECT

(a) On application of the person responsible for paying the Maryland estate tax and subject to § 13-601 of this article, the Comptroller may allow an alternative payment schedule for the Maryland estate tax, notwithstanding any payment extension under § 6166 of the Internal Revenue Code.

(b) The payment schedule may be in the form of:

(1) a payment deferral; or

(2) an installment payment plan.

(c) (1) For each alternative payment schedule allowed under subsection (a) of this section, the Comptroller shall specify the procedures and guidelines, including:

(i) conditions of eligibility; and

(ii) 1. amount and duration of any payment deferral; or

2. amount of and scheduled time for any installment payments.

(2) If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant.

(d) If an alternative payment schedule is allowed under subsection (a) of this section, the person responsible for filing the Maryland estate tax return under § 7-305 of this subtitle shall pay the tax in accordance with the schedule.

(e) (1) (i) In this subsection the following words have the meanings indicated.

(ii) “Farming purposes” has the meaning stated in § 2032A(e)(5) of the Internal Revenue Code.

(iii) “Qualified agricultural property” means real or personal property that is used primarily for farming purposes.

(iv) “Qualified recipient” means an individual who enters into an agreement to use qualified agricultural property for farming purposes after the decedent’s death.

(2) Subject to the provisions of this subsection, on application of the person responsible for paying the Maryland estate tax, the Comptroller shall allow a payment deferral for up to 3 years from the due date specified in § 7-306 of this subtitle for the Maryland estate tax imposed on qualified agricultural property that passes from the decedent to or for the use of a qualified recipient.

(3) (i) Subject to subparagraph (ii) of this paragraph, the amount of tax eligible for a payment deferral as provided under this subsection is the amount determined by multiplying the Maryland estate tax by a fraction:

1. the numerator of which is the value of qualified agricultural property that passes from the decedent to or for the use of a qualified recipient; and

2. the denominator of which is the value of the gross estate of the decedent.

(ii) The amount of tax deferred under this section may not exceed $375,000 as to any decedent.

(4) Notwithstanding a payment deferral under this subsection, the Maryland estate tax on qualified agricultural property that passes from the decedent to or for the use of a qualified recipient deferred under this section shall become due immediately if the qualified recipient ceases to use the qualified agricultural property for farming purposes before the tax is paid.

(5) Notwithstanding § 13-601(d) of this article, interest does not begin on unpaid Maryland estate tax that is allowed a payment deferral under this subsection until the tax is due under this subsection.

(6) If a payment deferral is allowed under this subsection, a qualified recipient shall pay the deferred Maryland estate tax, without interest, in accordance with a payment schedule prescribed by the Comptroller over a 3-year period beginning in the 4th year after the due date.

(7) To be eligible for a payment deferral under this subsection, a qualified recipient shall:

(i) file an application for the payment deferral and enter into an agreement in a form specified by the Comptroller to use the qualified agricultural property for farming purposes after the decedent’s death; and

(ii) file periodic reports or allow periodic inspections as required by the Comptroller to administer the provisions of this subsection.

(8) The Comptroller may grant an extension of the deferred payment period allowed under paragraph (6) of this subsection if the qualified recipient has a pending application to put the land on which the deferred estate tax is due under a permanent land conservation easement with:

(i) the Maryland Agricultural Land Preservation Foundation;

(ii) the Rural Legacy Board; or

(iii) an easement purchase program that is similar to the programs listed under items (i) and (ii) of this paragraph.

(9) The Comptroller shall adopt regulations to implement this subsection.

7-307. // EFFECTIVE JUNE 30, 2014 PER CHAPTER 554 OF 2010 //

(a) On application of the person responsible for paying the Maryland estate tax and subject to § 13-601 of this article, the Comptroller may allow an alternative payment schedule for the Maryland estate tax, notwithstanding any payment extension under § 6166 of the Internal Revenue Code.

(b) The payment schedule may be in the form of:

(1) a payment deferral; or

(2) an installment payment plan.

(c) (1) For each alternative payment schedule allowed under subsection (a) of this section, the Comptroller shall specify the procedures and guidelines, including:

(i) conditions of eligibility; and

(ii) 1. amount and duration of any payment deferral; or

2. amount of and scheduled time for any installment payments.

(2) If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant.

(d) If an alternative payment schedule is allowed under subsection (a) of this section, the person responsible for filing the Maryland estate tax return under § 7-305 of this subtitle shall pay the tax in accordance with the schedule.

§ 7-307 - Alternative payment schedule (Abrogation of amendment effective June 30, 2014.)

(a) In general. -- On application of the person responsible for paying the Maryland estate tax and subject to § 13-601 of this article, the Comptroller may allow an alternative payment schedule for the Maryland estate tax, notwithstanding any payment extension under § 6166 of the Internal Revenue Code.

(b) Form of schedule. -- The payment schedule may be in the form of:

(1) a payment deferral; or

(2) an installment payment plan.

(c) Action by Comptroller. --

(1) For each alternative payment schedule allowed under subsection (a) of this section, the Comptroller shall specify the procedures and guidelines, including:

(i) conditions of eligibility; and

(ii) 1. amount and duration of any payment deferral; or

2. amount of and scheduled time for any installment payments.

(2) If the Comptroller denies an application for an alternative payment schedule, the Comptroller shall mail a notice of the denial to the applicant.

(d) Time of payment. -- If an alternative payment schedule is allowed under subsection (a) of this section, the person responsible for filing the Maryland estate tax return under § 7-305 of this subtitle shall pay the tax in accordance with the schedule.