Proviso. It is provided, however, that where no tax is imposed under the above schedule because of the exemptions allowed, or where the tax imposed by such schedule is less than the amount of the credit allowed under the provisions of the Federal estate tax act, then a tax is imposed which, together with the taxes imposed by section 1 and section 4 of this chapter, shall equal the amount of the credit allowed under the provisions of said Federal act; and it is further provided that in the case of a nonresident decedent owning real property and tangible personal property within this State and in the case of a resident decedent owning real property and tangible personal property outside this State, a tax is imposed which, together with the taxes imposed by said sections 1 and 4, shall equal such proportion of the credit allowed under the provisions of said Federal act as the value of the property taxable in this State bears to the value of the entire estate.

(32)

Tax apportioned. This additional estate tax is apportioned among the taxable transferees of the net estate of the decedent in the proportion which the value of the share of each such transferee bears to the total value of said net estate. It is provided, however, that where a trust is created or other provision made whereby any person is given an interest in income or an estate for years, or for life, or other particular estate in any property or fund, the tax on both such particular estate or estates and on the remainder thereafter shall be charged against and paid out of the corpus of such property or fund without apportionment between remainders and particular estates, unless otherwise provided in the will or other instrument. (33)

Refund of excess. Whenever the amount of the three taxes imposed under this chapter exceeds the amount allowed as a credit under the provisions of the Federal estate tax act apportioned to this State, then the general treasurer, upon order of the board of tax commissioners, but only to the extent of the amount of tax imposed by section 32, refunds, without interest, such excess to the person by whom the tax imposed by said section 32 was paid. (34)

Intent of chapter. It is the intent and purpose of this chapter to obtain for this State the benefit of the credit allowed under the provisions of the Federal estate tax act. (34)

Provisions applicable to all taxes. All the provisions of this chapter relative to the taxes imposed by section 1 and section 4, except such provisions as relate to exemptions, and except insofar as said provisions may be inapplicable to or inconsistent with the provisions relating to the tax imposed by section 32, and all administrative provisions of this chapter, apply to all corresponding matters arising in connection with the additional estate tax imposed by section 32. (38)

Securing payment of taxes due other States.-Executors and administrators appointed by any probate court of this State are required to file, within 18 months after appointment, proof that all death taxes, together with interest thereon, or penalties attached thereto or in connection therewith, which are due the State of domicile of nonresident decedents whom they represent, or any political subdivision thereof, have been paid or secured, or that no such taxes, interest or penalties are due, but the filing of such proof is not required if it appears that letters testamentary have been issued in the State of

The provisions of law relating to this tax are shown on p. 7.

domicile. The provisions of this paragraph apply to the estate of a nonresident decedent whenever the laws of the State of domicile of such decedent contain a provision whereby this State is given reasonable assurance of the collection of its death taxes, interest and penalties, from the estates of decedents dying domiciled in this State but whose estates are being administered by a court having probate jurisdiction in such other State; or whenever the State of domicile of any decedent does not grant letters testamentary in nonresident estates until after such letters have been issued by the State of domicile. (41, 42)

Disposition of proceeds. The taxes collected by the general treasurer under these provisions are applied as follows: The receipts from the estate and inheritance taxes imposed under sections 1 and 4, respectively, are applied to meet the current expenses of the State. The receipts from the additional estate tax imposed under section 32, less any refunds allowed, are applied to meet the annual requirements of the sinking funds to retire the bonded indebtedness of the State during each fiscal year and to the extent that such receipts apply in lieu of any appropriation available therefor. The balance of such receipts, if any, less any such refund accruing in any fiscal year, is carried by the general treasurer in a separate account and is expended for the following purposes only: (a) Before any State bonds now authorized to be sold, the proceeds of which are to be applied to the cost of any permanent public improvement may be offered for public sale, the general treasurer applies any funds which may be presently available in said separate account to the purchase of such bonds in the name and on behalf of the State, to the extent of such available funds, after which the remainder of such bonds is offered for public sale. (b) The general treasurer may, from time to time, purchase any outstanding State bonds to the extent of any funds which may be presently available in said separate account, if such purchase is approved by the governor and State commissioner of finance. Bonds so purchased cease to bear interest, and such treasurer immediately cancels the same, together with the coupons attached thereto. (39) Administration of act.-The State board of tax commissioners administers the provisions of this act.

(2)

Sources of information. Chapter 1355, of the January Session of 1929, as amended by Chapter 1518 of the January Session of 1930, Chapter 1735 of the January Session of 1931, Chapter 1963 of the January Session of 1932, and Chapter 2449 of the December Session of 1936.

SOUTH CAROLINA

INHERITANCE AND ESTATE TAXES

Inheritance Tax

Tax imposed. A tax is imposed upon the transfer of any property, real, personal, or mixed, or of any interest therein or income therefrom, in trust or otherwise (and such transfers are construed to include all debts and all obligations, secured and unsecured, owned by any resident, citizen, person, or corporation of this State to any nonresident, except bonds issued by the State of South Carolina, or any subdivision thereof, and farm loan bonds issued pursuant to the Farm Loan Act, and collateral trust debentures or other similar obligations issued pursuant to the Agricultural Credits Act of 1923, when such bonds are held and owned by any nonresident without the State, and all property and the rights of any nature which this State has jurisdiction to enforce the payment of the tax), to persons, institutions or corporations, not hereinafter exempted. (2480)

Transfers taxable. This tax is imposed when the transfer is (a) By will or intestate laws of this State of deceased persons seized or possessed of property while a resident of the State; (b) by will or intestate laws of property within the State and deceased was a nonresident at the time of his death; (c) of property within the State, made by a resident or by a nonresident, by deed, grant, bargain, sale, or gift, made in contemplation of death of the grantor, vendor, or donor or intended to take effect in possession or enjoyment at or after death; (d) when any person, institution, or corporation exercises a power or appointment derived from any disposition of property, such appointment is a taxable transfer as though the property in question belonged to the donee of the power and had been bequeathed or devised by the donee by will. If anyone possessing such power fails to exercise the same within the time provided, a transfer subject to the tax is deemed to take place to the extent of such omission or failure; (e) property held in the joint names of two or more persons and payable to the survivor upon death of one of the parties, the right of the surviving joint tenant is deemed a transfer subject to tax in the same manner as though the whole property in question was owned by said parties as tenants in common and had been bequeathed to the survivor by the decedent. (2480)

Exemptions. The following exemptions are allowed: Class A: Husband or wife, $10,000; each minor child, $7,500; each adult child, father, or mother, $5,000. Class B: $500 to each beneficiary. Class C: $200 to each beneficiary. All property passing to or for the use of any educational, religious, cemetery, or other institutions, societies, or public charities in this State, at, for, or upon trust for any charitable purpose in the State, or for the care of cemetery lots, or for a city or town in this State, for public purposes, is not subject to tax. (2480) Classification of beneficiaries. For the purpose of this tax, bene

ficiaries are classified as follows: Class A: Husband, wife, child, grandchild, adopted child, father, or mother, of decedent. Class B: Lineal ancestors and lineal descendants (other than those in Class A), brothers, sisters, uncles, aunts, nephews, nieces, wife or widow of a son or husband of a daughter, of decedent. Class C: All others. (2480) Rates of tax. The tax is imposed at the rates following, but only on the amounts in excess of the exemptions allowed: (2480)

Payment of tax; interest.-The taxes imposed under these provisions are payable to the State treasurer at the expiration of 1 year after the date on which the executor, administrator, or trustee qualifies. Payment of the tax may be suspended by the State tax commission to await the disposition of a creditor's claim or litigation. In any event, if the taxes are not paid within 1 year from such date of qualification, interest at 10 percent per annum is charged. (2483)

Tax lien.-All such taxes and interest thereon are a lien on the property subject to the taxes until the same are paid. (2483)

Disposition of proceeds.-All taxes collected hereunder are for the support of the State government. (2480)

Administration of act.-The provisions of this act are administered and enforced by the State tax commission.

Source of information.-Code of 1932, as amended.

Estate Tax

Tax imposed. In addition to the inheritance tax imposed under the foregoing provisions, an estate tax is imposed upon the transfer of the net estate of every decedent, whether a resident or nonresident of this State. Where the inheritance tax imposed under said foregoing provisions is in the aggregate of a lesser amount than the maximum credit of 80 percent allowed by the Federal estate tax act, becauseof said tax herein imposed, then the inheritance tax shall be increased by an estate tax on the net estate so that the aggregate amount of tax due this State shall be the maximum amount of credit allowed under said Federal act. (1)

Payment of tax; interest. This tax is payable to the State tax commission at the same time at which the Federal estate tax is payable, and it bears interest, if any, at the same rate and for the same period as such Federal estate tax. (2)

Administration of act. The provisions of this act are administered by the State tax commission.

(3)

Source of administration.-Act No. 960 of Session Laws of 1936. 'The provisions of law relating to this tax are shown on p. 7.

SOUTH DAKOTA

INHERITANCE TAX

Tax imposed. A tax is imposed upon any transfer of property, real, personal, or mixed, or any interest therein or income therefrom, in trust or otherwise, to any person, association, or corporation, except as hereinafter exempted. (6827)

Transfers taxable. The following transfers are taxable: When the transfer is by will or by intestate laws of this State from any person dying possessed of the property while a resident of this State; when the transfer is by will or intestate laws, of property within this State or within its jurisdiction and the decedent was a nonresident of this State at the time of his death; when the transfer is of property made by a resident or by a nonresident, when such nonresident's property is within this State or within its jurisdiction, by deed, grant, bargain, sale, or gift, made in contemplation of the death of the grantor, vendor, or donor, or intended to take effect in possession or enjoyment at or after such death; when any person or corporation exercises a power of appointment derived from any disposition of property, such appointment when made is deemed a transfer taxable in the same manner as though the property to which such appointment relates belonged absolutely to the donee of such power and had been bequeathed or devised by such donee by will. (6827)

Exemptions. The following transfers of property are exempt from this tax: All property transferred to public corporations within this State for strictly county, township, school, or municipal purposes; and to a public hospital, academy, college, university, seminary of learning, church, or purely charitable institution within this State. Beneficiaries of classes A and B, except lineal ancestors, are allowed an exemption of $10,000; lineal ancestors, $3,000; class C beneficiaries, $500; class D beneficiaries, $200; and $100 for beneficiaries of class E. It is provided, however, that should any person so entitled to an exemption receive from the decedent by the same transfer property outside the jurisdiction of this State, the value of such outside property at the date of decedent's death is to be deducted from the amount of exemptions hereinbefore contemplated, and the remainder is to be the amount of exemptions allowed, and if the value equals or exceeds the exemptions, then no exemptions are allowed. (6832)

Classification of beneficiaries.—The beneficiaries under this act are classified as follows: Class A: Wife or lineal issue of decedent. Class B: Husband, lineal ancestor, adopted or mutually acknowledged child, of decedent, or lineal issue of any such child. Class C: Brothers, sisters, and descendants thereof, wife or widow of son, or husband of a daughter, of decedent. Class D: Brother or sister of the father or mother of decedent and their descendants. Class E: All others. (6830)

(121)