Rates of tax. The rates of tax imposed by this act on all amounts not in excess of $15,000 are as follows: class A, 1 percent; class B, 2 percent; class C, 3 percent; class D, 4 percent; and class E, 5 percent. All such rates are termed the "primary" rates. The "secondary" rates on amounts in excess of $15,000 and up to $50,000 are 2 times. the primary rates; over $50,000 to $100,000, 3 times the primary rates; and 4 times the primary rates on all amounts in excess of $100,000. The actual rates are shown in the table following: 6831)

(6830,

Payment of tax; interest.—This tax accrues upon the death of the decedent, and it is payable, as soon as the amount is determined, to the county treasurer of the county in which is located the probate court having jurisdiction; if not paid within 1 year from date of death, interest is charged at the rate of 7 percent from such date, unless, by reason of some unavoidable cause of delay, the tax cannot be determined, in which case interest is charged at the rate of 6 percent per annum from date of death until the cause of delay is removed, after which 7 percent is charged. If the tax is paid in full within 1 year from date of death, no interest is charged. (6834, 6853, 6854)

Tax lien. This tax is and remains a lien upon the property passed or transferred until paid, except where the transfer is by deed or grant. in the hands of a bona fide purchaser or incumbrancer without notice. The person to whom the property passes or is transferred and all administrators, executors, and the trustees of every estate are liable for any and all such taxes until the same have been paid. (6828)

Disposition of proceeds. The proceeds of this tax are distributed 90 percent to the general revenue fund of the State and 10 percent to the general fund of the county in which collected. (6853)

Administration of act.-The State tax commission has general charge and supervision of the collection of this tax. (6835)

Source of information.-Compiled Laws of South Dakota, 1929.

TENNESSEE

INHERITANCE AND ESTATE TAX

Inheritance Tax

Tax imposed. A tax is imposed, under the conditions and subject to the limitations hereinafter prescribed, upon transfers of property, in trust or otherwise, or any interest therein or accrued income therefrom. (1259)

Transfers taxable. The following transfers are taxable: (a) When the transfer is from a resident of this State, and is of real property situated within this State or of tangible personal property, except such as has an actual situs without this State; or of intangible personal property, or of proceeds of insurance policies, except as otherwise provided; or (b) when the transfer is from a nonresident of this State and is of real property situated within this State, or is of tangible personal property which has an actual situs within this State. Transfers enumerated above are taxable if made (1) by will; (2) by statutes regulating descent and distribution of property upon the death of the owner; (3) if a resident, any property specified under (a) above; and, if a nonresident, any property specified under (b) above transferred by the decedent prior to and in contemplation of death; (4) if a resident, any property specified under (a) above; and, if a nonresident, any property specified under (b) above transferred by the decedent prior to death by gift or grant intended to take effect in possession or enjoyment at or after death. A transfer of property subject to any charge, estate or interest, determinable by the death of the decedent or at any period ascertainable only by reference to his death, is deemed to have been intended to take effect in possession or enjoyment at or after death. Transfers under powers of appointment are taxable in like manner and to the same extent as if property of the testator or donor was transferred. (1259, 1260)

Same. Whenever property was held jointly by the decedent and one or more persons as joint tenants or tenants by the entirety, or deposited as joint depositors, and payable to one or more or to the survivor, the right of the survivor to ownership or possession is included for taxation to the extent of the part belonging to the decedent. If such part cannot be ascertained, the value passing is determined by dividing the value of the entire property by the number of persons in whose joint names it was held. If the decedent was a resident of this State, there is included in his gross estate the proceeds of insurance policies payable to named beneficiaries or to his estate, or in such manner as to be subject to claims against his estate and to distribution as a part thereof; but there are exempt from this act the proceeds. of such policies as may be payable to class A beneficiaries of the decedent and/or to a trustee, contractual, appointive or by will for such,

to the extent of $40,000; and there are also exempt from this tax the proceeds of policies upon the life of a soldier or former soldier, irrespective of the amount thereof, payable by the United States and known as war risk insurance. (1261, 1261a)

Same. If property is transferred to executors or trustees in lieu of commissions or allowances, the excess in value of the property so transferred above the amount of commissions or allowances which would be payable in the absence of such transfer, is taxable. The vesting in a wife of a dower interest upon the death of her husband, or in the husband of an interest as tenant by the curtesy upon the death of his wife or his right to succeed to the personal property of his wife dying intestate leaving no descendants surviving her, or any transfer of property in any other manner by operation of law upon the death of any person, is deemed a transfer taxable hereunder. (1263, 1264)

Deductions allowed. For the purposes of determining the net estate subject to tax, there is deducted from the value of the gross estate taxes on real and tangible personal property within this State which were a lien at the date of death; taxes on intangible personal property of decedent or on the income therefrom which constituted a personal obligation during his lifetime, or were a lien at the date of death; Federal income taxes accrued upon the income of the decedent at the date of death; death duties paid or payable to other jurisdictions on intangible personal property, but not Federal estate taxes; special assessments which at the time of decedent's death were a lien on real property within this State; actual funeral expenses; amounts expended for the purchase of a memorial, or monument to resident decedents; expenses of administration; and debts of the decedent which constituted lawful claims against his estate at the date of death, although in case of a resident decedent there is not allowed a debt secured by property outside of this State, except when the property by which the debt is secured is included in the measure of the tax hereby imposed, or except when such debt exceeds the value of the property securing it, in which case the excess may be deducted. In the case of a transfer other than by will or intestate laws, the only deductions permitted are liens subject to which the transfer is made, and transfer taxes paid or payable to other jurisdictions on intangible personal property. In the case of the estate of a nonresident, only such portion of the aforesaid deductions is allowed as is properly chargeable against the property the transfer of which is subject to taxation. (1265)

Exemptions. The following transfers are exempt from this tax: Property transferred to the United States, this State, or to any political subdivision thereof, to any public institution therein for public purposes, or to any corporation, society, association or trust formed for charitable, educational, or religious purposes. Beneficiaries of class A are allowed a maximum single exemption of $10,000 against that portion of the estate distributable to one or more beneficiaries of that class; a maximum single exemption of $1,000 is allowed beneficiaries of class B against that portion of the estate distributable to one or more beneficiaries of that class. No exemption is allowed against the estate of a nonresident decedent and no exemption or deduction is made on account of dower or curtesy. (1265, 1266)

Classification of beneficiaries.-The beneficiaries under this act are classified as follows: Class A: Husband, wife, son, daughter, lineal

ancestor or lineal descendant, legally adopted child and lineal descendant of such adopted child. Class B: All beneficiaries not included under Class A. (1266)

Rates of tax. The tax is imposed at the following rates on the net taxable estate or fractional part thereof, of a decedent passing to the beneficiaries: (1267)

Payment of tax; penalty; interest. This tax is payable to the commissioner of finance and taxation within 6 months after the death of the transferor; if not so paid, interest is charged thereon at the rate of 6 percent per annum; if not paid within 1 year after such death, a penalty of 12 percent per month is added, in addition to the interest. The penalty may be waived, but not the interest. The commissioner is authorized to enter into an agreement for the payment of the tax in installments; but if any installment payments extend beyond 1 year after decedent's death, interest is charged thereon at the rate of 6 percent per annum from date of death until date of payment. (1282-1284)

Tax lien. This tax becomes and remains a lien upon the property transferred, and upon all property acquired by the representative of the estate, or transferees, in exchange or substitution therefor, from date of decedent's death until payment, but such lien does not follow personal property after it has passed to a bona fide purchaser for value. (1279)

Disposition of proceeds. The proceeds of this tax are for the general use of the State. (1259)

Administration of act.-The commissioner of finance and taxation has full supervision of the administration and enforcement of this law. (1273)

Sources of information. Title 5, Chapter 1, Article X, Williams' Tennessee Code Annotated, 1934, and Cumulative Supplement,

1937.

Estate Tax

Tax imposed; rate. In addition to the inheritance tax imposed by the above provisions, an estate tax is imposed upon the transfer of the Tennessee estate of every decedent, the amount of which tax is equal to the extent, if any, of the excess of the credit allowable by the Federal estate tax act 2 over the aggregate of State taxes payable by or out of the Tennessee estate of the decedent, or any part thereof. (1297)

Payment; interest.-This estate tax is payable to the commissioner of finance and taxation at the same time or times 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. (1298)

The provisions of law relating to this tax are shown on p. 7. -9

132222-39

Tax lien. This tax, until payment thereof or until 6 years after the death of the decedent, is a lien upon all of the Tennessee estate of the decedent, but this lien expires at the close of 11⁄2 years from date of administration of the estate unless action be brought before that time for its enforcement. (1810)

Disposition of proceeds. The proceeds of this tax are paid into the general fund for the exclusive use of the State. Not exceeding 2% percent of the amount collected may be used for expenses of administration. (1300, 1315)

Administration of act.-The commissioner of finance and taxation is empowered to make all necessary rules and regulations for the purpose of carrying out these provisions. (1308)

Source of information.-Title 5, Chapter 1, Article XI, Williams' Tennessee Code, 1934.