State Codes and Statutes

Statutes > Texas > Tax-code > Title-2-state-taxation > Chapter-211-inheritance-taxes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE J. INHERITANCE TAX

CHAPTER 211. INHERITANCE TAXES

SUBCHAPTER A. DEFINITIONS AND GENERAL PROVISIONS

Sec. 211.001. DEFINITIONS. In this chapter:

(1) "Alien" means a decedent who, at the time of the decedent's

death, was not domiciled in Texas or any other state of the

United States and was not a citizen of the United States.

(2) "Death tax" means an estate, inheritance, legacy, or

succession tax.

(3) "Decedent" means a deceased natural person.

(4) "Federal credit" means the maximum amount of the credit for

state death taxes allowable under Section 2011, Internal Revenue

Code, and, in the case of an alien, under Section 2102, Internal

Revenue Code.

(5) "Federal estate tax" means the tax payable to the federal

government under Subtitle B, Chapter 11, Internal Revenue Code.

(6) "Federal generation-skipping transfer tax" means the tax

payable to the federal government under Subtitle B, Chapter 13,

Internal Revenue Code.

(7) "Federal tax" means the federal estate tax and the federal

generation-skipping transfer tax.

(8) "Generation-skipping transfer" means a transfer for which a

credit for state taxes is allowable under Section 2604, Internal

Revenue Code.

(9) "Generation-skipping transfer tax credit" means the maximum

amount of the credit for state death taxes allowable under

Section 2604, Internal Revenue Code.

(10) "Gross estate" means the gross estate as defined by

Sections 2031 through 2045, Internal Revenue Code, and, in the

case of an alien, by Section 2103, Internal Revenue Code.

(11) "Nonresident" means a decedent, other than an alien

decedent, who was not domiciled in Texas at the time of the

decedent's death.

(12) "Personal representative" means an executor, independent

executor, administrator, temporary administrator, trustee, or

another person administering the affairs of a decedent's estate.

(13) "Resident" means a decedent who was domiciled in Texas on

his date of death.

(14) "Value" means value as finally determined and used for

purposes of computing the federal tax.

(15) "Will" includes a codicil and includes a testamentary

instrument that appoints an executor or that revokes another

will.

Amended by Acts 1981, 67th Leg., p. 2758, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1993, 73rd Leg., ch. 1031, Sec. 23, eff.

Sept. 1, 1993.

Sec. 211.002. DAY OF DEATH OF PRESUMED DECEDENT. If a court

enters a final decree presuming a missing person to be dead, the

day of the person's death for the purposes of this chapter is the

day on which the court enters the decree establishing the fact of

death regardless of the presumed day of death established by the

decree.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.003. REFERENCES TO INTERNAL REVENUE CODE. A citation

of or a reference to a subtitle, a chapter, or a section of the

Internal Revenue Code of 1954 includes that subtitle, chapter, or

section as it exists on September 1, 1981, or as amended after

that date and also includes any other provision of the Internal

Revenue Code enacted after September 1, 1981, that is similar to

or a replacement of the subtitle, chapter, or section cited or

referred to.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER B. INHERITANCE TAXES: FEDERAL ESTATE TAX CREDIT AND

GENERATION-SKIPPING TRANSFER TAX CREDIT

Sec. 211.051. TAX ON PROPERTY OF RESIDENT. (a) A tax equal to

the amount of the federal credit is imposed on the transfer at

death of the property of every resident.

(b) If the estate of a resident is subject to a death tax

imposed by another state or states for which the federal credit

is allowable, the amount of the tax due under this section is

reduced by the lesser of:

(1) the amount of the death tax paid the other state or states

and that is allowable as the federal credit; or

(2) an amount determined by multiplying the federal credit by a

fraction, the numerator of which is the value of the resident's

gross estate less the value of the property of a resident, as

defined by Section (c) of this section, that is included in the

gross estate and the denominator of which is the value of the

resident's gross estate.

(c) Property of a resident includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and all

intangible personal property, wherever the notes, bonds, stock

certificates, or other evidence, if any, of the intangible

personal property may be physically located or wherever the banks

or other debtors of the decedent may be located or domiciled;

except that real property in a personal trust is not taxed if the

real property has an actual situs outside this state.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.052. TAX ON PROPERTY OF NONRESIDENT. (a) A tax is

imposed on the transfer at death of the property located in Texas

of every nonresident.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the nonresident's

gross estate.

(c) Property located in Texas of a nonresident includes real

property having an actual situs in this state whether or not held

in trust and tangible personal property having an actual situs in

this state, but intangibles that have acquired an actual situs in

this state are not taxable.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.053. TAX ON PROPERTY OF ALIEN. (a) A tax is imposed

on the transfer at death of the property located in Texas of

every alien.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the alien's gross

estate.

(c) Property located in Texas of an alien includes real property

having an actual situs in this state whether or not held in

trust; tangible personal property having an actual situs in this

state; and intangible personal property if the physical evidence

of the property is located within this state or if the property

is directly or indirectly subject to protection, preservation, or

regulation under the law of this state, to the extent that the

property is included in the decedent's gross estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.054. TAX ON PROPERTY INCLUDED IN GENERATION-SKIPPING

TRANSFER. (a) A tax is imposed on every generation-skipping

transfer.

(b) The tax is an amount determined by multiplying the

generation-skipping transfer tax credit by a fraction, the

numerator of which is the value of the property located in Texas

included in the generation-skipping transfer and the denominator

of which is the value of all property included in the

generation-skipping transfer.

(c) Property located in Texas includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and

tangible personal property owned by a trust having its principal

place of administration in this state at the time of the

generation-skipping transfer.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by this

chapter may not exceed the amount of the tax imposed under

Section 2001, Internal Revenue Code, reduced by the unified

credit provided under Section 2010, Internal Revenue Code.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 2001, 77th Leg., ch. 1263, Sec. 73, eff.

Sept. 1, 2001.

Sec. 211.056. COOPERATION WITH INTERNAL REVENUE SERVICE. (a)

The comptroller shall confer with the Internal Revenue Service of

the United States to determine the value of a decedent's estate

that is located in this state and that is valued by the United

States for tax purposes.

(b) The comptroller shall cooperate with the Internal Revenue

Service on matters relating to a decedent's estate located in

this state. The comptroller may exchange information with the

service about these matters.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER C. COLLECTION AND PAYMENT OF TAX

Sec. 211.101. PAYMENT: BY WHOM MADE. The personal

representative of a decedent's estate or other person liable for

the tax shall pay to the comptroller a tax determined under this

chapter on the estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as provided

by Sections 211.103 and 211.104(b), payment of a tax imposed by

Section 211.051, 211.052, or 211.053 of this code on a decedent's

estate is due nine months after the day of the decedent's death.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 57, eff. Sept. 1, 1997.

Sec. 211.103. POSTPONEMENT OF DAY ON WHICH PAYMENT IS DUE. (a)

If the date of the filing of the federal estate or

generation-skipping transfer tax return is extended by the

Internal Revenue Service, the filing of the return required by

Section 211.106 of this code is due on the date specified by the

Internal Revenue Service in granting any request for extension.

If the date of payment of the federal estate or

generation-skipping transfer tax is extended by the Internal

Revenue Service, the personal representative of the estate may

request an extension of the due date of the tax imposed by

Section 211.051, 211.052, 211.053, or 211.054 of this code on or

before the due date of the payment. An extension of the due date

may be granted upon a showing of good cause. The personal

representative of the estate shall notify the comptroller within

30 days after an extension granted by the Internal Revenue

Service.

(b) If an extension request is denied by the Internal Revenue

Service or the comptroller, the return required under this

chapter must be filed based on the best information available at

that time. The return must be filed and any tax and interest

estimated to be due must be paid within 10 days after the date of

the denial to avoid the imposition of penalties under this

chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

439, ch. 90, Sec. 1, eff. Sept. 1, 1983; Acts 1987, 70th Leg.,

2nd C.S., ch. 1, Sec. 10, eff. July 21, 1987.

Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX. (a)

Within 30 days after receiving notice or information of the final

assessment and determination of the value of the taxable estate

assessed and determined by the federal government for the purpose

of fixing federal estate taxes on that estate, the personal

representative shall make to the comptroller a report of the

value of the estate as so fixed and determined. The report shall

be made in a form and contain information as the comptroller

directs.

(b) Any additional tax due by a decedent's estate as a result of

an Internal Revenue Service audit or federal tax court decision

shall be paid to the comptroller not later than the 30th day

after the date the personal representative receives the notice or

information of the final assessment and determination of value of

the taxable estate by the federal government for the purpose of

fixing federal estate taxes on that estate. The comptroller shall

issue a determination if any additional amounts owed to the

comptroller are not remitted with a copy of the audit or tax

court changes.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 58, eff. Sept. 1, 1997.

Sec. 211.105. DATE DUE OF TAXES ON GENERATION-SKIPPING

TRANSFERS. The taxes on generation-skipping transfers are due

and payable at the same time as the federal tax on

generation-skipping transfers.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

440, ch. 90, Sec. 2, eff. Sept. 1, 1983.

Sec. 211.106. RETURNS. A payment shall be accompanied by a copy

of the federal estate or generation-skipping transfer tax return

filed with the Internal Revenue Service and the Texas tax return

containing any information the comptroller considers necessary

for the enforcement of this chapter. In the event no federal

estate or generation-skipping transfer tax has been paid or is

due and no federal estate or generation-skipping transfer tax

return must be filed, the filing of a Texas tax return is not

required by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 3, eff. Sept. 1, 1983.

Sec. 211.107. RECEIPT FOR PAYMENT. The comptroller shall issue

a receipt for payment of a tax imposed by this chapter. The

comptroller shall deliver the receipt to the person making the

payment or to the person's attorney of record.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.104 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.108. PERSONAL LIABILITY. Any person acquiring any

property subject to taxation under this chapter, to the extent of

the value of all property so acquired, shall be personally liable

for the tax imposed by this chapter and be charged with notice of

the existence of all of the unpaid taxes, penalties, interest,

and costs.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.107 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982.

Sec. 211.109. COMPROMISE AGREEMENT ON DOMICILE. (a) If the

comptroller claims that a decedent was domiciled in this state at

the time of death and a taxing authority of another state claims

that the decedent was domiciled in that state at the time of

death, the comptroller may agree in writing to a compromise with

the other taxing authority and the personal representative of the

decedent's estate.

(b) The compromise agreement shall set an amount that is

accepted by the comptroller in satisfaction of the tax that is

determined under this chapter on the decedent's estate and in

satisfaction of any related penalty or interest imposed under

this chapter before the agreement takes effect. The agreement

shall set the amount that the other taxing authority accepts in

satisfaction of a death tax, penalty, or interest.

(c) To be valid, the agreement must be approved by the attorney

general.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.110. FORMS. The comptroller shall prescribe a form for

a tax return or report required by this chapter and shall

prescribe other forms that request information necessary for the

comptroller to collect the taxes imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.155 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.111. LIMITATIONS. (a) The period of limitation

provided under Section 111.201 does not begin to run in favor of

a decedent's estate, the estate's personal representative, a

transferee, a distributee, or any other person liable under

Section 211.108 or 211.201 until the tax liability of the

decedent's estate becomes final. If an extension of time for

filing the return or paying the tax is granted to the decedent's

estate by the comptroller under Section 211.103, the extension

tolls the beginning of the limitation period for the estate's

personal representative, transferees, distributees, and other

persons.

(b) A limitation period does not begin to run in favor of a

decedent's estate, any personal representative, transferee,

distributee, or other person until the comptroller receives the

notice or information of the final assessment and determination

of the value of the decedent's estate for purpose of fixing

federal estate taxes on that estate, as required under Section

211.104.

(c) If property is transferred from a decedent's estate after

the comptroller receives notice or information as required under

Section 211.104 of the final assessment and determination of the

value of the estate by the federal government and the tax remains

unpaid, the limitation period does not begin to run in favor of a

person liable under Section 211.108 or 211.201 until the

comptroller learns of the transfer.

Added by Acts 1997, 75th Leg., ch. 1040, Sec. 59, eff. Sept. 1,

1997.

SUBCHAPTER D. TRANSFER OR DELIVERY OF PROPERTY AFTER DECEDENT'S

DEATH

Sec. 211.201. TRANSFER OF PROPERTY BEFORE TAX IS PAID. (a) If

any personal representative of a decedent's estate transfers in

whole or in part any of a decedent's property to any person

without having paid the tax, penalty, and interest due under this

chapter, the personal representative is personally liable for the

tax, penalty, and interest to the extent of the value of the

property transferred.

(b) A corporation, bank, stock transfer agent, safe deposit

institution or other depository or institution, or person in

actual or constructive possession of any property of the decedent

as agent of the decedent or custodian of the property or any

similar relationship such as debtor, bailor, or lessor (other

than a personal representative, spouse, transferee, trustee,

person in possession of property by reason of the exercise or

release of a power of appointment, legatee, devisee, heir, or

beneficiary who has received property) shall not be liable for

any tax, penalty, or interest imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 4, eff. Sept. 1, 1983.

SUBCHAPTER E. ENFORCEMENT

Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND OTHER

PROPERTY. The comptroller may examine books, records, documents,

or other property of a decedent's estate or of a personal

representative, transferee, or distributee of a decedent's estate

at any time the examination is necessary for the comptroller to

enforce this chapter without regard to the period provided by

Section 111.0041.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch. 1040, Sec. 60, eff.

Sept. 1, 1997.

Sec. 211.258. PENALTY FOR FAILURE TO PAY TAX OR FOR LATE

PAYMENT. (a) A person who is liable for a tax imposed by this

chapter and who fails to pay the tax when due forfeits five

percent of the amount due as a penalty, and if the person fails

to pay the tax within 30 days after the day on which the tax is

due, the person forfeits an additional five percent.

(b) A penalty is not imposed by this section on a person who is

liable for the tax if the person shows to the comptroller that

the failure to pay the tax is due to a reasonable cause and not

due to wilful neglect.

(c) The minimum penalty under this section is $1.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.260 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982; Acts 1983, 68th Leg., p. 454, ch. 93, Sec. 10, eff. Sept.

1, 1983.

Sec. 211.259. INTEREST ON TAXES. (a) A tax imposed by this

chapter draws interest at the rate set by Section 111.060 of this

code.

(b) The interest begins to accrue nine months after the day of

the death of the decedent on whose estate the tax is determined

or, in the case of taxes on generation-skipping transfers, on the

original due date of the taxes.

(c) If the accrued interest is less than $5, it does not have to

be paid.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.261 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 442, ch. 90, Sec. 6,

eff. Sept. 1, 1983.

SUBCHAPTER F. DISPOSITION OF REVENUE

Sec. 211.301. GENERAL REVENUE FUND. The revenue from a tax,

interest, or penalty imposed by this chapter shall be deposited

in the state treasury to the credit of the general revenue fund.

Acts 1981, 67th Leg., p. 1490, ch. 841, Sec. 1. Amended by Acts

1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a), eff. Jan. 1, 1982.

State Codes and Statutes

Statutes > Texas > Tax-code > Title-2-state-taxation > Chapter-211-inheritance-taxes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE J. INHERITANCE TAX

CHAPTER 211. INHERITANCE TAXES

SUBCHAPTER A. DEFINITIONS AND GENERAL PROVISIONS

Sec. 211.001. DEFINITIONS. In this chapter:

(1) "Alien" means a decedent who, at the time of the decedent's

death, was not domiciled in Texas or any other state of the

United States and was not a citizen of the United States.

(2) "Death tax" means an estate, inheritance, legacy, or

succession tax.

(3) "Decedent" means a deceased natural person.

(4) "Federal credit" means the maximum amount of the credit for

state death taxes allowable under Section 2011, Internal Revenue

Code, and, in the case of an alien, under Section 2102, Internal

Revenue Code.

(5) "Federal estate tax" means the tax payable to the federal

government under Subtitle B, Chapter 11, Internal Revenue Code.

(6) "Federal generation-skipping transfer tax" means the tax

payable to the federal government under Subtitle B, Chapter 13,

Internal Revenue Code.

(7) "Federal tax" means the federal estate tax and the federal

generation-skipping transfer tax.

(8) "Generation-skipping transfer" means a transfer for which a

credit for state taxes is allowable under Section 2604, Internal

Revenue Code.

(9) "Generation-skipping transfer tax credit" means the maximum

amount of the credit for state death taxes allowable under

Section 2604, Internal Revenue Code.

(10) "Gross estate" means the gross estate as defined by

Sections 2031 through 2045, Internal Revenue Code, and, in the

case of an alien, by Section 2103, Internal Revenue Code.

(11) "Nonresident" means a decedent, other than an alien

decedent, who was not domiciled in Texas at the time of the

decedent's death.

(12) "Personal representative" means an executor, independent

executor, administrator, temporary administrator, trustee, or

another person administering the affairs of a decedent's estate.

(13) "Resident" means a decedent who was domiciled in Texas on

his date of death.

(14) "Value" means value as finally determined and used for

purposes of computing the federal tax.

(15) "Will" includes a codicil and includes a testamentary

instrument that appoints an executor or that revokes another

will.

Amended by Acts 1981, 67th Leg., p. 2758, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1993, 73rd Leg., ch. 1031, Sec. 23, eff.

Sept. 1, 1993.

Sec. 211.002. DAY OF DEATH OF PRESUMED DECEDENT. If a court

enters a final decree presuming a missing person to be dead, the

day of the person's death for the purposes of this chapter is the

day on which the court enters the decree establishing the fact of

death regardless of the presumed day of death established by the

decree.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.003. REFERENCES TO INTERNAL REVENUE CODE. A citation

of or a reference to a subtitle, a chapter, or a section of the

Internal Revenue Code of 1954 includes that subtitle, chapter, or

section as it exists on September 1, 1981, or as amended after

that date and also includes any other provision of the Internal

Revenue Code enacted after September 1, 1981, that is similar to

or a replacement of the subtitle, chapter, or section cited or

referred to.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER B. INHERITANCE TAXES: FEDERAL ESTATE TAX CREDIT AND

GENERATION-SKIPPING TRANSFER TAX CREDIT

Sec. 211.051. TAX ON PROPERTY OF RESIDENT. (a) A tax equal to

the amount of the federal credit is imposed on the transfer at

death of the property of every resident.

(b) If the estate of a resident is subject to a death tax

imposed by another state or states for which the federal credit

is allowable, the amount of the tax due under this section is

reduced by the lesser of:

(1) the amount of the death tax paid the other state or states

and that is allowable as the federal credit; or

(2) an amount determined by multiplying the federal credit by a

fraction, the numerator of which is the value of the resident's

gross estate less the value of the property of a resident, as

defined by Section (c) of this section, that is included in the

gross estate and the denominator of which is the value of the

resident's gross estate.

(c) Property of a resident includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and all

intangible personal property, wherever the notes, bonds, stock

certificates, or other evidence, if any, of the intangible

personal property may be physically located or wherever the banks

or other debtors of the decedent may be located or domiciled;

except that real property in a personal trust is not taxed if the

real property has an actual situs outside this state.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.052. TAX ON PROPERTY OF NONRESIDENT. (a) A tax is

imposed on the transfer at death of the property located in Texas

of every nonresident.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the nonresident's

gross estate.

(c) Property located in Texas of a nonresident includes real

property having an actual situs in this state whether or not held

in trust and tangible personal property having an actual situs in

this state, but intangibles that have acquired an actual situs in

this state are not taxable.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.053. TAX ON PROPERTY OF ALIEN. (a) A tax is imposed

on the transfer at death of the property located in Texas of

every alien.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the alien's gross

estate.

(c) Property located in Texas of an alien includes real property

having an actual situs in this state whether or not held in

trust; tangible personal property having an actual situs in this

state; and intangible personal property if the physical evidence

of the property is located within this state or if the property

is directly or indirectly subject to protection, preservation, or

regulation under the law of this state, to the extent that the

property is included in the decedent's gross estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.054. TAX ON PROPERTY INCLUDED IN GENERATION-SKIPPING

TRANSFER. (a) A tax is imposed on every generation-skipping

transfer.

(b) The tax is an amount determined by multiplying the

generation-skipping transfer tax credit by a fraction, the

numerator of which is the value of the property located in Texas

included in the generation-skipping transfer and the denominator

of which is the value of all property included in the

generation-skipping transfer.

(c) Property located in Texas includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and

tangible personal property owned by a trust having its principal

place of administration in this state at the time of the

generation-skipping transfer.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by this

chapter may not exceed the amount of the tax imposed under

Section 2001, Internal Revenue Code, reduced by the unified

credit provided under Section 2010, Internal Revenue Code.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 2001, 77th Leg., ch. 1263, Sec. 73, eff.

Sept. 1, 2001.

Sec. 211.056. COOPERATION WITH INTERNAL REVENUE SERVICE. (a)

The comptroller shall confer with the Internal Revenue Service of

the United States to determine the value of a decedent's estate

that is located in this state and that is valued by the United

States for tax purposes.

(b) The comptroller shall cooperate with the Internal Revenue

Service on matters relating to a decedent's estate located in

this state. The comptroller may exchange information with the

service about these matters.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER C. COLLECTION AND PAYMENT OF TAX

Sec. 211.101. PAYMENT: BY WHOM MADE. The personal

representative of a decedent's estate or other person liable for

the tax shall pay to the comptroller a tax determined under this

chapter on the estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as provided

by Sections 211.103 and 211.104(b), payment of a tax imposed by

Section 211.051, 211.052, or 211.053 of this code on a decedent's

estate is due nine months after the day of the decedent's death.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 57, eff. Sept. 1, 1997.

Sec. 211.103. POSTPONEMENT OF DAY ON WHICH PAYMENT IS DUE. (a)

If the date of the filing of the federal estate or

generation-skipping transfer tax return is extended by the

Internal Revenue Service, the filing of the return required by

Section 211.106 of this code is due on the date specified by the

Internal Revenue Service in granting any request for extension.

If the date of payment of the federal estate or

generation-skipping transfer tax is extended by the Internal

Revenue Service, the personal representative of the estate may

request an extension of the due date of the tax imposed by

Section 211.051, 211.052, 211.053, or 211.054 of this code on or

before the due date of the payment. An extension of the due date

may be granted upon a showing of good cause. The personal

representative of the estate shall notify the comptroller within

30 days after an extension granted by the Internal Revenue

Service.

(b) If an extension request is denied by the Internal Revenue

Service or the comptroller, the return required under this

chapter must be filed based on the best information available at

that time. The return must be filed and any tax and interest

estimated to be due must be paid within 10 days after the date of

the denial to avoid the imposition of penalties under this

chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

439, ch. 90, Sec. 1, eff. Sept. 1, 1983; Acts 1987, 70th Leg.,

2nd C.S., ch. 1, Sec. 10, eff. July 21, 1987.

Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX. (a)

Within 30 days after receiving notice or information of the final

assessment and determination of the value of the taxable estate

assessed and determined by the federal government for the purpose

of fixing federal estate taxes on that estate, the personal

representative shall make to the comptroller a report of the

value of the estate as so fixed and determined. The report shall

be made in a form and contain information as the comptroller

directs.

(b) Any additional tax due by a decedent's estate as a result of

an Internal Revenue Service audit or federal tax court decision

shall be paid to the comptroller not later than the 30th day

after the date the personal representative receives the notice or

information of the final assessment and determination of value of

the taxable estate by the federal government for the purpose of

fixing federal estate taxes on that estate. The comptroller shall

issue a determination if any additional amounts owed to the

comptroller are not remitted with a copy of the audit or tax

court changes.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 58, eff. Sept. 1, 1997.

Sec. 211.105. DATE DUE OF TAXES ON GENERATION-SKIPPING

TRANSFERS. The taxes on generation-skipping transfers are due

and payable at the same time as the federal tax on

generation-skipping transfers.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

440, ch. 90, Sec. 2, eff. Sept. 1, 1983.

Sec. 211.106. RETURNS. A payment shall be accompanied by a copy

of the federal estate or generation-skipping transfer tax return

filed with the Internal Revenue Service and the Texas tax return

containing any information the comptroller considers necessary

for the enforcement of this chapter. In the event no federal

estate or generation-skipping transfer tax has been paid or is

due and no federal estate or generation-skipping transfer tax

return must be filed, the filing of a Texas tax return is not

required by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 3, eff. Sept. 1, 1983.

Sec. 211.107. RECEIPT FOR PAYMENT. The comptroller shall issue

a receipt for payment of a tax imposed by this chapter. The

comptroller shall deliver the receipt to the person making the

payment or to the person's attorney of record.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.104 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.108. PERSONAL LIABILITY. Any person acquiring any

property subject to taxation under this chapter, to the extent of

the value of all property so acquired, shall be personally liable

for the tax imposed by this chapter and be charged with notice of

the existence of all of the unpaid taxes, penalties, interest,

and costs.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.107 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982.

Sec. 211.109. COMPROMISE AGREEMENT ON DOMICILE. (a) If the

comptroller claims that a decedent was domiciled in this state at

the time of death and a taxing authority of another state claims

that the decedent was domiciled in that state at the time of

death, the comptroller may agree in writing to a compromise with

the other taxing authority and the personal representative of the

decedent's estate.

(b) The compromise agreement shall set an amount that is

accepted by the comptroller in satisfaction of the tax that is

determined under this chapter on the decedent's estate and in

satisfaction of any related penalty or interest imposed under

this chapter before the agreement takes effect. The agreement

shall set the amount that the other taxing authority accepts in

satisfaction of a death tax, penalty, or interest.

(c) To be valid, the agreement must be approved by the attorney

general.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.110. FORMS. The comptroller shall prescribe a form for

a tax return or report required by this chapter and shall

prescribe other forms that request information necessary for the

comptroller to collect the taxes imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.155 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.111. LIMITATIONS. (a) The period of limitation

provided under Section 111.201 does not begin to run in favor of

a decedent's estate, the estate's personal representative, a

transferee, a distributee, or any other person liable under

Section 211.108 or 211.201 until the tax liability of the

decedent's estate becomes final. If an extension of time for

filing the return or paying the tax is granted to the decedent's

estate by the comptroller under Section 211.103, the extension

tolls the beginning of the limitation period for the estate's

personal representative, transferees, distributees, and other

persons.

(b) A limitation period does not begin to run in favor of a

decedent's estate, any personal representative, transferee,

distributee, or other person until the comptroller receives the

notice or information of the final assessment and determination

of the value of the decedent's estate for purpose of fixing

federal estate taxes on that estate, as required under Section

211.104.

(c) If property is transferred from a decedent's estate after

the comptroller receives notice or information as required under

Section 211.104 of the final assessment and determination of the

value of the estate by the federal government and the tax remains

unpaid, the limitation period does not begin to run in favor of a

person liable under Section 211.108 or 211.201 until the

comptroller learns of the transfer.

Added by Acts 1997, 75th Leg., ch. 1040, Sec. 59, eff. Sept. 1,

1997.

SUBCHAPTER D. TRANSFER OR DELIVERY OF PROPERTY AFTER DECEDENT'S

DEATH

Sec. 211.201. TRANSFER OF PROPERTY BEFORE TAX IS PAID. (a) If

any personal representative of a decedent's estate transfers in

whole or in part any of a decedent's property to any person

without having paid the tax, penalty, and interest due under this

chapter, the personal representative is personally liable for the

tax, penalty, and interest to the extent of the value of the

property transferred.

(b) A corporation, bank, stock transfer agent, safe deposit

institution or other depository or institution, or person in

actual or constructive possession of any property of the decedent

as agent of the decedent or custodian of the property or any

similar relationship such as debtor, bailor, or lessor (other

than a personal representative, spouse, transferee, trustee,

person in possession of property by reason of the exercise or

release of a power of appointment, legatee, devisee, heir, or

beneficiary who has received property) shall not be liable for

any tax, penalty, or interest imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 4, eff. Sept. 1, 1983.

SUBCHAPTER E. ENFORCEMENT

Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND OTHER

PROPERTY. The comptroller may examine books, records, documents,

or other property of a decedent's estate or of a personal

representative, transferee, or distributee of a decedent's estate

at any time the examination is necessary for the comptroller to

enforce this chapter without regard to the period provided by

Section 111.0041.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch. 1040, Sec. 60, eff.

Sept. 1, 1997.

Sec. 211.258. PENALTY FOR FAILURE TO PAY TAX OR FOR LATE

PAYMENT. (a) A person who is liable for a tax imposed by this

chapter and who fails to pay the tax when due forfeits five

percent of the amount due as a penalty, and if the person fails

to pay the tax within 30 days after the day on which the tax is

due, the person forfeits an additional five percent.

(b) A penalty is not imposed by this section on a person who is

liable for the tax if the person shows to the comptroller that

the failure to pay the tax is due to a reasonable cause and not

due to wilful neglect.

(c) The minimum penalty under this section is $1.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.260 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982; Acts 1983, 68th Leg., p. 454, ch. 93, Sec. 10, eff. Sept.

1, 1983.

Sec. 211.259. INTEREST ON TAXES. (a) A tax imposed by this

chapter draws interest at the rate set by Section 111.060 of this

code.

(b) The interest begins to accrue nine months after the day of

the death of the decedent on whose estate the tax is determined

or, in the case of taxes on generation-skipping transfers, on the

original due date of the taxes.

(c) If the accrued interest is less than $5, it does not have to

be paid.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.261 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 442, ch. 90, Sec. 6,

eff. Sept. 1, 1983.

SUBCHAPTER F. DISPOSITION OF REVENUE

Sec. 211.301. GENERAL REVENUE FUND. The revenue from a tax,

interest, or penalty imposed by this chapter shall be deposited

in the state treasury to the credit of the general revenue fund.

Acts 1981, 67th Leg., p. 1490, ch. 841, Sec. 1. Amended by Acts

1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a), eff. Jan. 1, 1982.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Tax-code > Title-2-state-taxation > Chapter-211-inheritance-taxes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE J. INHERITANCE TAX

CHAPTER 211. INHERITANCE TAXES

SUBCHAPTER A. DEFINITIONS AND GENERAL PROVISIONS

Sec. 211.001. DEFINITIONS. In this chapter:

(1) "Alien" means a decedent who, at the time of the decedent's

death, was not domiciled in Texas or any other state of the

United States and was not a citizen of the United States.

(2) "Death tax" means an estate, inheritance, legacy, or

succession tax.

(3) "Decedent" means a deceased natural person.

(4) "Federal credit" means the maximum amount of the credit for

state death taxes allowable under Section 2011, Internal Revenue

Code, and, in the case of an alien, under Section 2102, Internal

Revenue Code.

(5) "Federal estate tax" means the tax payable to the federal

government under Subtitle B, Chapter 11, Internal Revenue Code.

(6) "Federal generation-skipping transfer tax" means the tax

payable to the federal government under Subtitle B, Chapter 13,

Internal Revenue Code.

(7) "Federal tax" means the federal estate tax and the federal

generation-skipping transfer tax.

(8) "Generation-skipping transfer" means a transfer for which a

credit for state taxes is allowable under Section 2604, Internal

Revenue Code.

(9) "Generation-skipping transfer tax credit" means the maximum

amount of the credit for state death taxes allowable under

Section 2604, Internal Revenue Code.

(10) "Gross estate" means the gross estate as defined by

Sections 2031 through 2045, Internal Revenue Code, and, in the

case of an alien, by Section 2103, Internal Revenue Code.

(11) "Nonresident" means a decedent, other than an alien

decedent, who was not domiciled in Texas at the time of the

decedent's death.

(12) "Personal representative" means an executor, independent

executor, administrator, temporary administrator, trustee, or

another person administering the affairs of a decedent's estate.

(13) "Resident" means a decedent who was domiciled in Texas on

his date of death.

(14) "Value" means value as finally determined and used for

purposes of computing the federal tax.

(15) "Will" includes a codicil and includes a testamentary

instrument that appoints an executor or that revokes another

will.

Amended by Acts 1981, 67th Leg., p. 2758, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1993, 73rd Leg., ch. 1031, Sec. 23, eff.

Sept. 1, 1993.

Sec. 211.002. DAY OF DEATH OF PRESUMED DECEDENT. If a court

enters a final decree presuming a missing person to be dead, the

day of the person's death for the purposes of this chapter is the

day on which the court enters the decree establishing the fact of

death regardless of the presumed day of death established by the

decree.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.003. REFERENCES TO INTERNAL REVENUE CODE. A citation

of or a reference to a subtitle, a chapter, or a section of the

Internal Revenue Code of 1954 includes that subtitle, chapter, or

section as it exists on September 1, 1981, or as amended after

that date and also includes any other provision of the Internal

Revenue Code enacted after September 1, 1981, that is similar to

or a replacement of the subtitle, chapter, or section cited or

referred to.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER B. INHERITANCE TAXES: FEDERAL ESTATE TAX CREDIT AND

GENERATION-SKIPPING TRANSFER TAX CREDIT

Sec. 211.051. TAX ON PROPERTY OF RESIDENT. (a) A tax equal to

the amount of the federal credit is imposed on the transfer at

death of the property of every resident.

(b) If the estate of a resident is subject to a death tax

imposed by another state or states for which the federal credit

is allowable, the amount of the tax due under this section is

reduced by the lesser of:

(1) the amount of the death tax paid the other state or states

and that is allowable as the federal credit; or

(2) an amount determined by multiplying the federal credit by a

fraction, the numerator of which is the value of the resident's

gross estate less the value of the property of a resident, as

defined by Section (c) of this section, that is included in the

gross estate and the denominator of which is the value of the

resident's gross estate.

(c) Property of a resident includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and all

intangible personal property, wherever the notes, bonds, stock

certificates, or other evidence, if any, of the intangible

personal property may be physically located or wherever the banks

or other debtors of the decedent may be located or domiciled;

except that real property in a personal trust is not taxed if the

real property has an actual situs outside this state.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.052. TAX ON PROPERTY OF NONRESIDENT. (a) A tax is

imposed on the transfer at death of the property located in Texas

of every nonresident.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the nonresident's

gross estate.

(c) Property located in Texas of a nonresident includes real

property having an actual situs in this state whether or not held

in trust and tangible personal property having an actual situs in

this state, but intangibles that have acquired an actual situs in

this state are not taxable.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.053. TAX ON PROPERTY OF ALIEN. (a) A tax is imposed

on the transfer at death of the property located in Texas of

every alien.

(b) The tax is an amount determined by multiplying the federal

credit by a fraction, the numerator of which is the value of the

property located in Texas that is included in the gross estate

and the denominator of which is the value of the alien's gross

estate.

(c) Property located in Texas of an alien includes real property

having an actual situs in this state whether or not held in

trust; tangible personal property having an actual situs in this

state; and intangible personal property if the physical evidence

of the property is located within this state or if the property

is directly or indirectly subject to protection, preservation, or

regulation under the law of this state, to the extent that the

property is included in the decedent's gross estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.054. TAX ON PROPERTY INCLUDED IN GENERATION-SKIPPING

TRANSFER. (a) A tax is imposed on every generation-skipping

transfer.

(b) The tax is an amount determined by multiplying the

generation-skipping transfer tax credit by a fraction, the

numerator of which is the value of the property located in Texas

included in the generation-skipping transfer and the denominator

of which is the value of all property included in the

generation-skipping transfer.

(c) Property located in Texas includes real property having an

actual situs in this state whether or not held in trust; tangible

personal property having an actual situs in this state; and

tangible personal property owned by a trust having its principal

place of administration in this state at the time of the

generation-skipping transfer.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

Sec. 211.055. MAXIMUM TAX. The amount of tax imposed by this

chapter may not exceed the amount of the tax imposed under

Section 2001, Internal Revenue Code, reduced by the unified

credit provided under Section 2010, Internal Revenue Code.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 2001, 77th Leg., ch. 1263, Sec. 73, eff.

Sept. 1, 2001.

Sec. 211.056. COOPERATION WITH INTERNAL REVENUE SERVICE. (a)

The comptroller shall confer with the Internal Revenue Service of

the United States to determine the value of a decedent's estate

that is located in this state and that is valued by the United

States for tax purposes.

(b) The comptroller shall cooperate with the Internal Revenue

Service on matters relating to a decedent's estate located in

this state. The comptroller may exchange information with the

service about these matters.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982.

SUBCHAPTER C. COLLECTION AND PAYMENT OF TAX

Sec. 211.101. PAYMENT: BY WHOM MADE. The personal

representative of a decedent's estate or other person liable for

the tax shall pay to the comptroller a tax determined under this

chapter on the estate.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as provided

by Sections 211.103 and 211.104(b), payment of a tax imposed by

Section 211.051, 211.052, or 211.053 of this code on a decedent's

estate is due nine months after the day of the decedent's death.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 57, eff. Sept. 1, 1997.

Sec. 211.103. POSTPONEMENT OF DAY ON WHICH PAYMENT IS DUE. (a)

If the date of the filing of the federal estate or

generation-skipping transfer tax return is extended by the

Internal Revenue Service, the filing of the return required by

Section 211.106 of this code is due on the date specified by the

Internal Revenue Service in granting any request for extension.

If the date of payment of the federal estate or

generation-skipping transfer tax is extended by the Internal

Revenue Service, the personal representative of the estate may

request an extension of the due date of the tax imposed by

Section 211.051, 211.052, 211.053, or 211.054 of this code on or

before the due date of the payment. An extension of the due date

may be granted upon a showing of good cause. The personal

representative of the estate shall notify the comptroller within

30 days after an extension granted by the Internal Revenue

Service.

(b) If an extension request is denied by the Internal Revenue

Service or the comptroller, the return required under this

chapter must be filed based on the best information available at

that time. The return must be filed and any tax and interest

estimated to be due must be paid within 10 days after the date of

the denial to avoid the imposition of penalties under this

chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

439, ch. 90, Sec. 1, eff. Sept. 1, 1983; Acts 1987, 70th Leg.,

2nd C.S., ch. 1, Sec. 10, eff. July 21, 1987.

Sec. 211.104. REPORT OF DETERMINATION OF FEDERAL TAX. (a)

Within 30 days after receiving notice or information of the final

assessment and determination of the value of the taxable estate

assessed and determined by the federal government for the purpose

of fixing federal estate taxes on that estate, the personal

representative shall make to the comptroller a report of the

value of the estate as so fixed and determined. The report shall

be made in a form and contain information as the comptroller

directs.

(b) Any additional tax due by a decedent's estate as a result of

an Internal Revenue Service audit or federal tax court decision

shall be paid to the comptroller not later than the 30th day

after the date the personal representative receives the notice or

information of the final assessment and determination of value of

the taxable estate by the federal government for the purpose of

fixing federal estate taxes on that estate. The comptroller shall

issue a determination if any additional amounts owed to the

comptroller are not remitted with a copy of the audit or tax

court changes.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch.

1040, Sec. 58, eff. Sept. 1, 1997.

Sec. 211.105. DATE DUE OF TAXES ON GENERATION-SKIPPING

TRANSFERS. The taxes on generation-skipping transfers are due

and payable at the same time as the federal tax on

generation-skipping transfers.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

440, ch. 90, Sec. 2, eff. Sept. 1, 1983.

Sec. 211.106. RETURNS. A payment shall be accompanied by a copy

of the federal estate or generation-skipping transfer tax return

filed with the Internal Revenue Service and the Texas tax return

containing any information the comptroller considers necessary

for the enforcement of this chapter. In the event no federal

estate or generation-skipping transfer tax has been paid or is

due and no federal estate or generation-skipping transfer tax

return must be filed, the filing of a Texas tax return is not

required by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 3, eff. Sept. 1, 1983.

Sec. 211.107. RECEIPT FOR PAYMENT. The comptroller shall issue

a receipt for payment of a tax imposed by this chapter. The

comptroller shall deliver the receipt to the person making the

payment or to the person's attorney of record.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.104 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.108. PERSONAL LIABILITY. Any person acquiring any

property subject to taxation under this chapter, to the extent of

the value of all property so acquired, shall be personally liable

for the tax imposed by this chapter and be charged with notice of

the existence of all of the unpaid taxes, penalties, interest,

and costs.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.107 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982.

Sec. 211.109. COMPROMISE AGREEMENT ON DOMICILE. (a) If the

comptroller claims that a decedent was domiciled in this state at

the time of death and a taxing authority of another state claims

that the decedent was domiciled in that state at the time of

death, the comptroller may agree in writing to a compromise with

the other taxing authority and the personal representative of the

decedent's estate.

(b) The compromise agreement shall set an amount that is

accepted by the comptroller in satisfaction of the tax that is

determined under this chapter on the decedent's estate and in

satisfaction of any related penalty or interest imposed under

this chapter before the agreement takes effect. The agreement

shall set the amount that the other taxing authority accepts in

satisfaction of a death tax, penalty, or interest.

(c) To be valid, the agreement must be approved by the attorney

general.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982.

Sec. 211.110. FORMS. The comptroller shall prescribe a form for

a tax return or report required by this chapter and shall

prescribe other forms that request information necessary for the

comptroller to collect the taxes imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.155 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982.

Sec. 211.111. LIMITATIONS. (a) The period of limitation

provided under Section 111.201 does not begin to run in favor of

a decedent's estate, the estate's personal representative, a

transferee, a distributee, or any other person liable under

Section 211.108 or 211.201 until the tax liability of the

decedent's estate becomes final. If an extension of time for

filing the return or paying the tax is granted to the decedent's

estate by the comptroller under Section 211.103, the extension

tolls the beginning of the limitation period for the estate's

personal representative, transferees, distributees, and other

persons.

(b) A limitation period does not begin to run in favor of a

decedent's estate, any personal representative, transferee,

distributee, or other person until the comptroller receives the

notice or information of the final assessment and determination

of the value of the decedent's estate for purpose of fixing

federal estate taxes on that estate, as required under Section

211.104.

(c) If property is transferred from a decedent's estate after

the comptroller receives notice or information as required under

Section 211.104 of the final assessment and determination of the

value of the estate by the federal government and the tax remains

unpaid, the limitation period does not begin to run in favor of a

person liable under Section 211.108 or 211.201 until the

comptroller learns of the transfer.

Added by Acts 1997, 75th Leg., ch. 1040, Sec. 59, eff. Sept. 1,

1997.

SUBCHAPTER D. TRANSFER OR DELIVERY OF PROPERTY AFTER DECEDENT'S

DEATH

Sec. 211.201. TRANSFER OF PROPERTY BEFORE TAX IS PAID. (a) If

any personal representative of a decedent's estate transfers in

whole or in part any of a decedent's property to any person

without having paid the tax, penalty, and interest due under this

chapter, the personal representative is personally liable for the

tax, penalty, and interest to the extent of the value of the

property transferred.

(b) A corporation, bank, stock transfer agent, safe deposit

institution or other depository or institution, or person in

actual or constructive possession of any property of the decedent

as agent of the decedent or custodian of the property or any

similar relationship such as debtor, bailor, or lessor (other

than a personal representative, spouse, transferee, trustee,

person in possession of property by reason of the exercise or

release of a power of appointment, legatee, devisee, heir, or

beneficiary who has received property) shall not be liable for

any tax, penalty, or interest imposed by this chapter.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1981, 67th Leg., 1st C.S., p. 189, ch.

17, art. 2, Sec. 1, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p.

441, ch. 90, Sec. 4, eff. Sept. 1, 1983.

SUBCHAPTER E. ENFORCEMENT

Sec. 211.251. COMPTROLLER'S AUTHORITY TO EXAMINE BOOKS AND OTHER

PROPERTY. The comptroller may examine books, records, documents,

or other property of a decedent's estate or of a personal

representative, transferee, or distributee of a decedent's estate

at any time the examination is necessary for the comptroller to

enforce this chapter without regard to the period provided by

Section 111.0041.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982; Acts 1997, 75th Leg., ch. 1040, Sec. 60, eff.

Sept. 1, 1997.

Sec. 211.258. PENALTY FOR FAILURE TO PAY TAX OR FOR LATE

PAYMENT. (a) A person who is liable for a tax imposed by this

chapter and who fails to pay the tax when due forfeits five

percent of the amount due as a penalty, and if the person fails

to pay the tax within 30 days after the day on which the tax is

due, the person forfeits an additional five percent.

(b) A penalty is not imposed by this section on a person who is

liable for the tax if the person shows to the comptroller that

the failure to pay the tax is due to a reasonable cause and not

due to wilful neglect.

(c) The minimum penalty under this section is $1.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.260 by Acts 1981,

67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1, eff. Jan. 1,

1982; Acts 1983, 68th Leg., p. 454, ch. 93, Sec. 10, eff. Sept.

1, 1983.

Sec. 211.259. INTEREST ON TAXES. (a) A tax imposed by this

chapter draws interest at the rate set by Section 111.060 of this

code.

(b) The interest begins to accrue nine months after the day of

the death of the decedent on whose estate the tax is determined

or, in the case of taxes on generation-skipping transfers, on the

original due date of the taxes.

(c) If the accrued interest is less than $5, it does not have to

be paid.

Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a),

eff. Jan. 1, 1982. Renumbered from Sec. 211.261 and amended by

Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, Sec. 1,

eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 442, ch. 90, Sec. 6,

eff. Sept. 1, 1983.

SUBCHAPTER F. DISPOSITION OF REVENUE

Sec. 211.301. GENERAL REVENUE FUND. The revenue from a tax,

interest, or penalty imposed by this chapter shall be deposited

in the state treasury to the credit of the general revenue fund.

Acts 1981, 67th Leg., p. 1490, ch. 841, Sec. 1. Amended by Acts

1981, 67th Leg., p. 2759, ch. 752, Sec. 6(a), eff. Jan. 1, 1982.