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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of federal estate tax provisions in determining |
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the application of the Texas estate tax to certain transfers of |
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property and to the allocation of Texas estate tax revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 211.001(14), Tax Code, is amended to |
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read as follows: |
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(14) "Value" means value as finally determined and |
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used for purposes of computing the federal tax or the tax imposed by |
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this chapter. |
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SECTION 2. Section 211.003, Tax Code, is amended to read as |
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follows: |
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Sec. 211.003. REFERENCES TO INTERNAL REVENUE CODE. A |
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citation of or a reference to a subtitle, a chapter, or a section of |
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the Internal Revenue Code of 1954 is a citation of or reference to |
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[includes] that subtitle, chapter, or section as it existed |
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[exists] on December 31, 2000 [September 1, 1981, or as amended
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after that date and also includes any other provision of the
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Internal Revenue Code enacted after September 1, 1981, that is
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similar to or a replacement of the subtitle, chapter, or section
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cited or referred to]. |
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SECTION 3. Section 211.056, Tax Code, is amended by adding a |
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new Subsection (a) and relettering existing Subsection (a) as |
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Subsection (a-1) to read as follows: |
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(a) This section applies only to an estate that is subject |
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to both the federal tax and the tax imposed by this chapter. |
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(a-1) The comptroller shall confer with the Internal |
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Revenue Service of the United States to determine the value of a |
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decedent's estate that is located in this state and that is valued |
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by the United States for tax purposes. |
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SECTION 4. Subchapter B, Chapter 211, Tax Code, is amended |
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by adding Section 211.057 to read as follows: |
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Sec. 211.057. VALUE OF ESTATES NOT SUBJECT TO FEDERAL TAX. |
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The comptroller shall adopt rules for determining the value of a |
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decedent's estate that is located in this state and that is not |
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subject to the federal tax. |
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SECTION 5. Section 211.102, Tax Code, is amended to read as |
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follows: |
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Sec. 211.102. DAY ON WHICH PAYMENT IS DUE. Except as |
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provided by Sections 211.103 and 211.104 [211.104(b)], payment of a |
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tax imposed by Section 211.051, 211.052, or 211.053 [of this code] |
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on a decedent's estate is due nine months after the day of the |
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decedent's death. |
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SECTION 6. Section 211.103, Tax Code, is amended by adding |
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Subsection (a-1) to read as follows: |
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(a-1) The personal representative of an estate that is |
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subject to a tax imposed by this chapter but that is not subject to |
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the federal tax may request an extension of time under Section |
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111.057 for filing a report required by this chapter. |
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SECTION 7. Section 211.104, Tax Code, is amended by adding a |
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new Subsection (a) and relettering existing Subsection (a) as |
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Subsection (a-1) to read as follows: |
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(a) This section applies only to an estate that is subject |
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to both the federal tax and the tax imposed by this chapter. |
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(a-1) Within 30 days after receiving notice or information |
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of the final assessment and determination of the value of the |
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taxable estate assessed and determined by the federal government |
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for the purpose of fixing federal estate taxes on that estate, the |
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personal representative shall make to the comptroller a report of |
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the value of the estate as so fixed and determined. The report |
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shall be made in a form and contain information as the comptroller |
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directs. |
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SECTION 8. Sections 211.105 and 211.106, Tax Code, are |
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amended to read as follows: |
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Sec. 211.105. DATE DUE OF TAXES ON GENERATION-SKIPPING |
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TRANSFERS. (a) The taxes imposed by this chapter on |
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generation-skipping transfers that are subject to the federal tax |
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are due and payable at the same time as the federal tax on |
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generation-skipping transfers. |
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(b) The comptroller shall adopt rules specifying a due date |
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for taxes imposed by this chapter on generation-skipping transfers |
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that are not subject to the federal tax. |
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Sec. 211.106. RETURNS. A payment relating to an estate that |
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is subject to the federal tax must [shall] be accompanied by a copy |
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of the federal estate or generation-skipping transfer tax return |
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filed with the Internal Revenue Service and the Texas tax return |
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containing any information the comptroller considers necessary for |
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the enforcement of this chapter. A payment relating to an estate |
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that is subject to the tax imposed by this chapter but is not |
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subject to the federal tax must be accompanied by the Texas tax |
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return [In the event no federal estate or generation-skipping
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transfer tax has been paid or is due and no federal estate or
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generation-skipping transfer tax return must be filed, the filing
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of a Texas tax return is not required by this chapter]. |
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SECTION 9. Section 211.301, Tax Code, is amended to read as |
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follows: |
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Sec. 211.301. ALLOCATION OF REVENUE [GENERAL REVENUE FUND]. |
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The revenue from a tax, interest, or penalty imposed by this chapter |
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shall be deposited in the state treasury to the credit of the TEXAS |
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grant program account established under Section 56.312, Education |
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Code [general revenue fund]. |
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SECTION 10. Section 56.310(b), Education Code, is amended |
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to read as follows: |
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(b) The legislature may appropriate money, including money |
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deposited to the credit of the TEXAS grant program account, for the |
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purposes of this subchapter. |
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SECTION 11. Subchapter M, Chapter 56, Education Code, is |
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amended by adding Section 56.312 to read as follows: |
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Sec. 56.312. TEXAS GRANT PROGRAM ACCOUNT. The TEXAS grant |
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program account is an account in the general revenue fund that may |
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be appropriated only to the coordinating board for the purpose of |
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implementing the TEXAS grant program under this subchapter. |
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SECTION 12. The change in law made by this Act to Chapter |
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211, Tax Code, applies only to a transfer of property subject to |
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that chapter that occurs as a result of the death of a person who |
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dies on or after the effective date of this Act. A transfer of |
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property that occurs as a result of the death of a person who dies |
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before the effective date of this Act is governed by the law in |
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effect on the date of the person's death, and that law is continued |
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in effect for that purpose. |
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SECTION 13. This Act takes effect September 1, 2007. |