Section 10-40-17 - Valuation of estate subject to contingency--Return of overpayment on happening ofcontingency. - South Dakota Statutes

10-40-17. Valuation of estate subject to contingency--Return of overpayment on happening of contingency. In estimating the value of any estate or interest in property, to the beneficial enjoyment or possession of which there are persons or corporations presently entitled, no allowance shall be made on account of any contingent encumbrance thereon, nor on account of any contingency upon the happening of which the estate or property, or some part thereof or interest therein, might be abridged, defeated, or diminished. In the event of such encumbrance taking effect as an actual burden upon the interest of the beneficiary or in the event of the abridgment, defeat, or diminution of such estate or property, or interest therein, as aforesaid, a return shall be made to the person entitled thereto of a proportionate amount of such tax on account of the encumbrance having taken effect, or of so much of the tax as will reduce the same to the amount which would have been assessed on account of the actual duration or extent of the estate or interest enjoyed. Such return 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, § 6845; SDC 1939, § 57.2322.