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A BILL TO BE ENTITLED
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AN ACT
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relating to imposing a state estate tax and using the revenue |
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generated by the tax to provide payments to parents. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subtitle J, Title 2, Tax Code, is |
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amended to read as follows: |
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SUBTITLE J. ESTATE [INHERITANCE] TAX |
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SECTION 2. Subtitle J, Title 2, Tax Code, is amended by |
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adding Chapter 212 to read as follows: |
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CHAPTER 212. ESTATE TAX |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 212.0001. DEFINITIONS. In this chapter: |
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(1) "Internal Revenue Code" means the Internal Revenue |
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Code of 1986 in effect on January 1, 2021, not including any changes |
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made by federal law after that date, but including any regulations |
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adopted under that code applicable to the tax year to which the |
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provisions of the code in effect on that date applied. |
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(2) "Taxable estate" has the meaning assigned by |
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Section 2051, Internal Revenue Code, except that no deduction from |
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the value of the gross estate is allowed for the amount of tax |
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imposed by this chapter. |
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SUBCHAPTER B. DETERMINATION OF TAX DUE |
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Sec. 212.0051. TAX ON DECEDENT'S ESTATE. (a) A tax is |
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imposed on the estate of each person who dies while a resident of |
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this state. |
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(b) The rate of the tax is five percent of the value of the |
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taxable estate. |
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SUBCHAPTER C. COLLECTION AND PAYMENT OF TAX; ENFORCEMENT |
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Sec. 212.0101. ADMINISTRATION. The comptroller shall adopt |
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rules to implement, administer, and enforce the tax under this |
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chapter. |
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Sec. 212.0102. PENALTIES. The comptroller may impose |
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penalties to enforce this chapter. |
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SUBCHAPTER C. DISPOSITION OF REVENUE |
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Sec. 212.0151. PAYMENTS TO PARENTS. (a) The amount of the |
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proceeds from the collection of the tax imposed by this chapter |
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shall be deposited to the credit of an account in the general |
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revenue fund administered by the comptroller. Money in the account |
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may be appropriated to the comptroller only for the purpose of |
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providing payments under this section. |
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(b) A person who gives birth to or adopts a child in this |
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state is entitled to a one-time payment in an amount set by the |
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comptroller if money is made available to the comptroller for that |
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purpose. The comptroller shall set the amount of the initial |
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payment authorized under this section in the amount of $1,000. |
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(c) On January 1 of each year, the comptroller shall |
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increase the amount of the payment authorized under this section by |
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an amount equal to the amount of the payment authorized under this |
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section in the preceding year multiplied by the percentage |
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increase, if any, in the Consumer Price Index for Urban Wage Earners |
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and Clerical Workers (CPI-W) published by the United States Bureau |
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of Labor Statistics or its successor in function during the |
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preceding calendar year. |
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(d) The comptroller shall adopt rules for distributing the |
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payments described by this section. |
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SECTION 3. Chapter 212, Tax Code, as added by this Act, |
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applies only to the estate of a person who dies while a resident of |
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this state on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2022. |