Title 7. Death Taxes — Subtitle 1. Definitions; General Provisions

When a register claims that a decedent was domiciled in this State at the time of death and the taxing authority of another state makes a similar claim on behalf of that state, then, with the approval of the Attorney General of this State, the Comptroller may make a written agreement with the other taxing authority and with the personal representative to submit the controversy to the decision of a board consisting of 1 or any other uneven number of arbitrators. The personal representative may make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.

The board of arbitrators may administer oaths, take testimony, and subpoena witnesses and books, records, and other documents. A subpoena may be signed by any member of the board. If a person fails to obey a subpoena, on petition of the board, any court of record of this State may pass an order requiring compliance with the subpoena and may punish failure to obey the order as a contempt.

By majority vote, the board of arbitrators shall determine the domicile of the decedent at the time of death. This determination is final for purposes of imposing and collecting death taxes but not for any other purpose.

Except as provided in § 7-106 of this subtitle in respect to issuing subpoenas, any question that arises in the course of the proceeding shall be determined by a majority vote of the board of arbitrators.

The Comptroller, the board of arbitrators, or the personal representative shall file:

If the board of arbitrators determines that the decedent died domiciled in this State, interest and penalties, if otherwise imposed by law, for nonpayment of death taxes between the dates of the agreement and of filing of the determination of the board as to domicile, may not exceed a rate determined under § 13-604 of this article.

This Part II of this subtitle does not prevent the parties to the agreement made under § 7-104 of this subtitle from making a written compromise at any time, if not prohibited by other law. A compromise may determine the amounts to be accepted by this and any other state involved in full satisfaction of death taxes.

The compensation and expenses of the members of the board of arbitrators and its employees may be agreed on by the members and the personal representative or, if they cannot agree, shall be determined by the appropriate court of record of the state determined by the board to be the domicile of the decedent. The amounts agreed on or determined shall be deemed an expense of administration and are payable by the personal representative.

This Part II of this subtitle applies only if each state that is involved in a controversy has a law that is identical or substantially similar to this Part II of this subtitle.

This Part II of this subtitle shall be interpreted and construed to effectuate its general purpose to make uniform the law of those states that enact it.

This Part II of this subtitle may be cited as the “Maryland Uniform Act on Interstate Arbitration of Death Taxes”.

When a register claims that a decedent was domiciled in this State at the time of death and the taxing authority of another state makes a similar claim on behalf of that state, then, with the approval of the Attorney General of this State, the Comptroller may make a written agreement of compromise with the other taxing authority and the personal representative that a certain sum shall be accepted in full satisfaction of all death taxes imposed by this State, including any interest or penalties to the date of filing the agreement. The agreement also shall determine the amount to be accepted by the other state in full satisfaction of death taxes. The personal representative may make the agreement.

Unless the death taxes are paid within 60 days after the agreement is filed, interest and penalties shall accrue on the amount determined in the agreement, but the time between the decedent’s death and the filing may not be included in computing the interest and penalties.

This Part III of this subtitle shall be interpreted and construed to effectuate its general purpose to make uniform the law of those states that enact it.

This Part III of this subtitle may be cited as the “Maryland Uniform Act on Interstate Compromise of Death Taxes”.