2005 Texas Tax Code CHAPTER 211. INHERITANCE TAXES

TAX CODE

SUBTITLE J. INHERITANCE TAX

CHAPTER 211. INHERITANCE TAXES

SUBCHAPTER A. DEFINITIONS AND GENERAL PROVISIONS


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1993, 73rd Leg., ch. 1031, § 23, eff. Sept. 1, 
1993.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.

SUBCHAPTER B. INHERITANCE TAXES:  FEDERAL ESTATE TAX CREDIT AND 
GENERATION-SKIPPING TRANSFER TAX CREDIT


	§ 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, § 6(a), eff. 
Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 2001, 77th Leg., ch. 1263, § 73, eff. Sept. 1, 
2001.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.

SUBCHAPTER C. COLLECTION AND PAYMENT OF TAX


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1997, 75th Leg., ch. 1040, § 
57, eff. Sept. 1, 1997.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1983, 68th Leg., p. 439, ch. 90, 
§ 1, eff. Sept. 1, 1983;  Acts 1987, 70th Leg., 2nd C.S., ch. 1, 
§ 10, eff. July 21, 1987.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1997, 75th Leg., ch. 1040, § 
58, eff. Sept. 1, 1997.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1983, 68th Leg., p. 440, ch. 90, 
§ 2, eff. Sept. 1, 1983.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1983, 68th Leg., p. 441, ch. 90, 
§ 3, eff. Sept. 1, 1983.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.  Renumbered from § 211.104 by Acts 1981, 67th Leg., 
1st C.S., p. 189, ch. 17, art. 2, § 1, eff. Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.  Renumbered from § 211.107 and amended by Acts 
1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, § 1, eff. Jan. 
1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.  Renumbered from § 211.155 by Acts 1981, 67th Leg., 
1st C.S., p. 189, ch. 17, art. 2, § 1, eff. Jan. 1, 1982.


	§ 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, § 59, eff. Sept. 1, 
1997.       

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


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 
2, § 1, eff. Jan. 1, 1982;  Acts 1983, 68th Leg., p. 441, ch. 90, 
§ 4, eff. Sept. 1, 1983.

SUBCHAPTER E. ENFORCEMENT


	§ 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, § 6(a), eff. 
Jan. 1, 1982;  Acts 1997, 75th Leg., ch. 1040, § 60, eff. Sept. 1, 
1997.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.  Renumbered from § 211.260 by Acts 1981, 67th Leg., 
1st C.S., p. 189, ch. 17, art. 2, § 1, eff. Jan. 1, 1982;  Acts 
1983, 68th Leg., p. 454, ch. 93, § 10, eff. Sept. 1, 1983.


	§ 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, § 6(a), eff. 
Jan. 1, 1982.  Renumbered from § 211.261 and amended by Acts 
1981, 67th Leg., 1st C.S., p. 189, ch. 17, art. 2, § 1, eff. Jan. 
1, 1982;  Acts 1983, 68th Leg., p. 442, ch. 90, § 6, eff. Sept. 1, 
1983.

SUBCHAPTER F. DISPOSITION OF REVENUE


	§ 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, § 1.  Amended by Acts 
1981, 67th Leg., p. 2759, ch. 752, § 6(a), eff. Jan. 1, 1982.