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.