Which Form of Taxation Is Not Used in Texas

question 49

Multiple Choice

Which form of taxation is not used in Texas?

• A) income tax
• B) property tax
• C) oil production tax
• D) sales tax
• E) cigarette tax

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Definitions:

Testamentary Trust

A trust that is created according to the instructions in a person’s will to manage assets for beneficiaries after the person's death.

Charitable Trust

A trust created to benefit a particular charity or the public in general, typically for educational, religious, scientific, or other charitable purposes.

Cy Pres Trust

A legal principle allowing courts to modify charitable trusts or gifts to closely match the donor's intent if the original purpose becomes impracticable or impossible to achieve.

Spendthrift Trust

A legal arrangement that prevents the beneficiary's creditors from accessing the trust funds, providing long-term financial security for the beneficiary.