Section 10-40-16 - Contingent and conditional transfers taxed at highest possible rate--Return ofoverpayment on happening of contingency taxed at lower rate--Exception. - South-dakota Statutes

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10-40-16. Contingent and conditional transfers taxed at highest possible rate--Return of overpayment on happening of contingency taxed at lower rate--Exception. When property is transferred in trust or otherwise and the rights, interests, or estates of the transferee are dependent upon contingencies or conditions whereby they may be wholly or in part defeated, extended, or abridged, a tax shall be imposed upon such transfer at the highest rate which, on the happening of any of such contingencies or conditions would be possible under the provisions of this code, and such tax so imposed shall be due and payable forthwith by the executors or trustees out of the property transferred. However, upon the happening of any contingency where such property or any part thereof is transferred to a person or corporation exempt from taxation under the provisions of this chapter, or to any persons taxable at a rate less than the rate imposed and paid, such person or corporation shall be entitled to a return of so much of the tax imposed and paid as equals the difference between the amount paid and the amount which such person or corporation should pay under the provisions of this code, with interest thereon at the rate of three percent per annum except in the case of estates of decedents dying after June 30, 1991, where interest at the Category E rate as established in § 54-3-16 shall be paid from the time of payment. Such return of overpayment shall be made in the manner provided in chapter 10-41 for refunds of tax paid in error.

Source: SL 1915, ch 217, § 12; RC 1919, § 6844; SDC 1939, § 57.2321; SL 1991, ch 95, § 1.

State Codes and Statutes

Statutes > South-dakota > Title-10 > Chapter-40 > Statute-10-40-16

10-40-16. Contingent and conditional transfers taxed at highest possible rate--Return of overpayment on happening of contingency taxed at lower rate--Exception. When property is transferred in trust or otherwise and the rights, interests, or estates of the transferee are dependent upon contingencies or conditions whereby they may be wholly or in part defeated, extended, or abridged, a tax shall be imposed upon such transfer at the highest rate which, on the happening of any of such contingencies or conditions would be possible under the provisions of this code, and such tax so imposed shall be due and payable forthwith by the executors or trustees out of the property transferred. However, upon the happening of any contingency where such property or any part thereof is transferred to a person or corporation exempt from taxation under the provisions of this chapter, or to any persons taxable at a rate less than the rate imposed and paid, such person or corporation shall be entitled to a return of so much of the tax imposed and paid as equals the difference between the amount paid and the amount which such person or corporation should pay under the provisions of this code, with interest thereon at the rate of three percent per annum except in the case of estates of decedents dying after June 30, 1991, where interest at the Category E rate as established in § 54-3-16 shall be paid from the time of payment. Such return of overpayment shall be made in the manner provided in chapter 10-41 for refunds of tax paid in error.

Source: SL 1915, ch 217, § 12; RC 1919, § 6844; SDC 1939, § 57.2321; SL 1991, ch 95, § 1.

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State Codes and Statutes

Statutes > South-dakota > Title-10 > Chapter-40 > Statute-10-40-16

10-40-16. Contingent and conditional transfers taxed at highest possible rate--Return of overpayment on happening of contingency taxed at lower rate--Exception. When property is transferred in trust or otherwise and the rights, interests, or estates of the transferee are dependent upon contingencies or conditions whereby they may be wholly or in part defeated, extended, or abridged, a tax shall be imposed upon such transfer at the highest rate which, on the happening of any of such contingencies or conditions would be possible under the provisions of this code, and such tax so imposed shall be due and payable forthwith by the executors or trustees out of the property transferred. However, upon the happening of any contingency where such property or any part thereof is transferred to a person or corporation exempt from taxation under the provisions of this chapter, or to any persons taxable at a rate less than the rate imposed and paid, such person or corporation shall be entitled to a return of so much of the tax imposed and paid as equals the difference between the amount paid and the amount which such person or corporation should pay under the provisions of this code, with interest thereon at the rate of three percent per annum except in the case of estates of decedents dying after June 30, 1991, where interest at the Category E rate as established in § 54-3-16 shall be paid from the time of payment. Such return of overpayment shall be made in the manner provided in chapter 10-41 for refunds of tax paid in error.

Source: SL 1915, ch 217, § 12; RC 1919, § 6844; SDC 1939, § 57.2321; SL 1991, ch 95, § 1.