Section 10-40-21 - Primary rates of tax.
10-40-21. Primary rates of tax. When property or any beneficial interest in such property passes by a transfer subject to taxation under this chapter and the property exceeds the value of the exemption specified in § 10-40-23 and does not exceed in value fifteen thousand dollars, the tax hereby imposed is:
(1) One and one-half percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property is a lineal issue of the decedent, or any child adopted as such in conformity with the laws of this or any other state, or any stepchild, or any child to whom such decedent for not less than ten years prior to such transfer stood in mutually acknowledged relationship of a parent if such relationship began at or before the child's fifteenth birthday and was continuous for ten years thereafter, or any lineal issue of such adopted, step, or mutually acknowledged child. For purposes of this subdivision, a stepchild is any child of a decedent's spouse;
(2) Three percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property is a lineal ancestor of the decedent;
(3) Four percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property is a brother or sister or a descendant of a brother or sister of the decedent, a wife or widow of a son, or the husband or widower of a daughter of the decedent except as provided in subdivision (6) of this section;
(4) Five percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property is the brother or sister of the father or mother or a descendant of a brother or sister of the father or mother of the decedent, except as provided in subdivision (6) of this section;
(5) Six percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property is in any other degree of collateral consanguinity than is hereinbefore stated, or is a stranger in blood to the decedent, or is a body politic or corporate, except as provided in subdivision (6) of this section;
(6) Three percent of the clear value of such interest in such property if the person entitled to any beneficial interest in such property other than those persons defined in subdivisions (1) and (2) of this section, continuously operated the business or farming enterprise with the decedent for at least ten of the fifteen years immediately prior to the decedent's death and if such property constituted real or tangible personal property physically used by such person and the decedent in such business or farming enterprise or if such property constitutes shares of stock in a closely held corporation to the extent that those shares represent real or tangible personal property. In determining the inheritance tax on a qualifying transferee who is also receiving nonfarm or nonbusiness property, the inheritance tax rates and increased rates shall be applied in a consecutive manner. The tax shall first be imposed on the value of the nonfarm or nonbusiness property received by the qualifying transferee. Then the tax shall be imposed on the value of the farm or business property starting in the same rate or increased rate category where the value of the nonfarm or nonbusiness property ends.
Source: SL 1915, ch 217, § 3a; RC 1919, § 6830; SL 1919, ch 108; SDC 1939, § 57.2402; SL 1943, ch 294; SL 1953, ch 466, §§ 1, 2; SL 1969, ch 265; SL 1979, ch 79; SL 1980, ch 89, § 1; SL 1982, ch 28, § 8; SL 1987, ch 93; SL 1991, ch 96; SL 1994, ch 90, § 1.