78(R) HB 2532 - Introduced version


                                                                                

78R2292 SMJ-D

By:  Turner                                                       H.B. No. 2532



A BILL TO BE ENTITLED

AN ACT

relating to the use of federal estate tax provisions in determining 
the application of the Texas estate tax to certain transfers of 
property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 211.001(14), Tax Code, is amended to 
read as follows:    
		(14)  "Value" means value as finally determined and 
used for purposes of computing the federal tax or the tax imposed by 
this chapter.
	SECTION 2.  Section 211.003, Tax Code, is amended to read as 
follows:        
	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 is a citation of or reference to
[includes] that subtitle, chapter, or section as it existed
[exists] on December 31, 2000 [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].
	SECTION 3.  Section 211.056, Tax Code, is amended by adding a 
new Subsection (a) and relettering existing Subsection (a) as 
Subsection (a-1) to read as follows:
	(a)  This section applies only to an estate that is subject 
to both the federal tax and the tax imposed by this chapter.
	(a-1)  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.
	SECTION 4.  Subchapter B, Chapter 211, Tax Code, is amended 
by adding Section 211.057 to read as follows:
	Sec. 211.057.  VALUE OF ESTATES NOT SUBJECT TO FEDERAL TAX.  
The comptroller shall adopt rules for determining the value of a 
decedent's estate that is located in this state and that is not 
subject to the federal tax.
	SECTION 5.  Section 211.102, Tax Code, is amended to read as 
follows:        
	Sec. 211.102.  DAY ON WHICH PAYMENT IS DUE.  Except as 
provided by Sections 211.103 and 211.104 [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.
	SECTION 6.  Section 211.103, Tax Code, is amended by adding 
Subsection (a-1) to read as follows:
	(a-1)  The personal representative of an estate that is 
subject to a tax imposed by this chapter but that is not subject to 
the federal tax may request an extension of time under Section 
111.057 for filing a report required by this chapter.
	SECTION 7.  Section 211.104, Tax Code, is amended by adding a 
new Subsection (a) and relettering existing Subsection (a) as 
Subsection (a-1) to read as follows:
	(a)  This section applies only to an estate that is subject 
to both the federal tax and the tax imposed by this chapter.
	(a-1)  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.
	SECTION 8.  Sections 211.105 and 211.106, Tax Code, are 
amended to read as follows:
	Sec. 211.105.  DATE DUE OF TAXES ON GENERATION-SKIPPING 
TRANSFERS.  (a)  The taxes imposed by this chapter on 
generation-skipping transfers that are subject to the federal tax
are due and payable at the same time as the federal tax on 
generation-skipping transfers.
	(b)  The comptroller shall adopt rules specifying a due date 
for taxes imposed by this chapter on generation-skipping transfers 
that are not subject to the federal tax.
	Sec. 211.106.  RETURNS.  A payment relating to an estate that 
is subject to the federal tax must [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.  A payment relating to an estate 
that is subject to the tax imposed by this chapter but is not 
subject to the federal tax must be accompanied by the Texas tax 
return. [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.]
	SECTION 9.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The change in law made by this Act applies only to a 
transfer of property subject to Chapter 211, Tax Code, that occurs 
as a result of the death of a person on or after the effective date 
of this Act.  A transfer of property that occurs as a result of the 
death of a person before the effective date of this Act is governed 
by the law in effect on the day of the person's death, and that law 
is continued in effect for that purpose.