Chairman Hoffman and Members of the Committee:
I am Robert R. Jones, a resident of Montgomery County, representing the Maryland Taxpayers Association, a non-profit, non-partisan organization of individuals and County Taxpayer Associations. MTA officers and Board members are all volunteers. Repeal of the inheritance tax and reduction of the estate tax is one of the stated current ten major goals of the Maryland Taxpayers Association and has been supported by MTA for several years.
I am pleased to be here to testify on H.B.13 as a follow up to the testimony before the House Ways and Means Committee on January 25th and before the Senate Budget and Taxation Committee on February 16th . I need not repeat the statements made in those hearings since it appears that the Delegates have agreed that repeal of this unfair and punishing tax was overdue.
However, we believe that all the good intentions incorporated into the repeal have been ambushed by a small favored segment of the government. This makes H.B.13 a fraud. It is not a true tax cut and many of the same people who could have been spared Maryland's punishing inheritance tax will instead by hit -- blind sided if you will--by increased probate fees.
The Registers of Wills stood to lose the 25% portion of the inheritance tax collected that is currently available to fund their offices. But rather than requiring the Registers to submit a budget to the Legislature for their funds, like other agencies, H.B.13 provides funding of the Registers by increasing the fees for probate.
The issue of probate fees was addressed in the House by an amendment to remove from H.B.13 the proposed increases. This was defeated as was another amendment which would have at least provided some honesty by changing the name of the bill to reflect the increase in probate fees. This also failed so that now H.B.13 contains another stealth raid on the estate of those who die in Maryland. MTA members, in clear conscience, cannot say that this is good legislation.
Maryland Taxpayers Association urges the Senate to reconsider very carefully these two amendments. Their inclusion or rejection will clearly define whether this legislation is a true elimination of the onerous state tax on dying or whether it is just a phony exercise to convey a false impression of reducing the cost of dying in Maryland.
MTA will recognize and thank those senators who listen and act in the Taxpayers' interest. We appreciate the opportunity to bring to your attention the obligation to provide a true tax repeal that isn't destroyed by a back door increase in probate fees.
Thank you. Questions ?
Robert R. Jones, MTA Secretary, 1 Bay Tree Lane, Bethesda MD 20816, 301-229-3616
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