Ezel / Tax Rulings / TX
TX 9109L1132A13 Personal Income Tax 1991-09-16

Did Texas personal income, inheritance, estate, or gift taxes increase the tax burden on military survivor-plan annuity payments in 1991?

Short answer: No. The Comptroller said Texas had no personal income tax and taxed only to the extent of the federal credit for state death taxes, so the annuity owner or recipient faced no added Texas burden.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

Asked about Retired Serviceman's Family Protection Plan and Survivor Benefit Plan annuity payments, the Comptroller said Texas had no personal income tax. The letter also said Texas taxed only to the extent of the federal credit allowed for state death taxes against federal estate and gift tax.

On that 1991 basis, the recipient or owner of the annuity did not face an increased burden from Texas income, inheritance, estate, or gift taxes.

What this means for you

This is a short historical letter stating the Texas tax structure in 1991. The STAR disclaimer is especially important because estate and gift tax law can change over time.

Common questions

Did Texas impose personal income tax on the annuity? No.

Did the letter identify an additional Texas inheritance, estate, or gift tax burden? No.

Citations and references

  • No statute was cited in the letter.

Source

Original ruling text

September 16, 1991

Dear **:

Thank you for your letter dated August 23, 1991, concerning Retired
Serviceman's Family Protection Plan and Survivor Benefit Plan annuity
payments.

Texas does not have a personal income tax. Texas only taxes to the
extent of the credit allowed for state death taxes against federal
estate and gift tax. Therefore, a recipient or owner of an annuity
will not need to be concerned with Texas income, inheritance, estate,
or gift taxes increasing the tax burden at all.

If we may be of further assistance, please do not hesitate to write
or call Jerry Oxford at 1-800-252-5555, extension 3-4662.

Sincerely,

JOHN SHARP
Comptroller of Public Accounts

Get today's answer for your situation

You just read a 1991 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.