In this subtitle the following words have the meanings indicated. “Federal credit” means: the maximum allowable credit for State taxes under § 2604 of the Internal Revenue Code against the federal generation-skipping transfer tax; less the amount that bears the same ratio to the maximum allowable credit as the value of the generation-skipping transfer taxable by all other states bears to the total value of the generation-skipping transfer. “Federal generation-skipping transfer tax” means the tax imposed by § 2601 of the Internal Revenue Code. “Generation-skipping transfer” means a transfer subject to the federal generation-skipping transfer tax. “Original transferor” means an individual who makes a transfer of property that results in the imposition of the federal generation-skipping transfer tax.

Except as provided in subsection (b) of this section, a tax is imposed on a generation-skipping transfer that occurs at the same time and as a result of the death of an individual, if: the original transferor was a resident of this State on the date of the original transfer; or the original transferor was not a resident of this State on the date of the original transfer; and the generation-skipping transfer includes property having a situs in this State. The Maryland generation-skipping transfer tax does not apply to a direct skip, as defined under § 2612 of the Internal Revenue Code.

The Maryland generation-skipping transfer tax is the amount of the federal credit.

The value of property included in a generation-skipping transfer is the same value as determined under Chapter 13 of the Internal Revenue Code.

The person required to file a federal generation-skipping transfer tax return on which a federal credit is allowable shall complete and file a Maryland generation-skipping transfer tax return with the Comptroller on or before the last day for filing the federal return. If, after a person files a Maryland generation-skipping transfer tax return, the federal generation-skipping transfer tax is increased, the person shall complete and file an amended return with the Comptroller when the additional federal tax is paid.

The person required to pay the federal generation-skipping transfer tax shall pay the Maryland generation-skipping transfer tax to the Comptroller on or before the last day for filing a Maryland generation-skipping transfer tax return.