Gift Tax

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Who Must File

Every person making gifts to a single donee totaling more than the amount of the applicable exclusion must file a return.

Who is Liable for the Tax

The tax is primarily due and payable by the donor. In the case of a donor who has died prior to payment, the tax shall be reported and paid by his executor or administrator. If the tax is not paid when due, the donee of any gift shall be liable for the tax to the extent of the value of the gift.

Rate of Tax

The tax rate is two percent for the first $15,000 in taxable gifts and three percent for the amount above $15,000 in taxable gifts. The tax is computed by applying the tax rates to the total of all taxable gifts made since July 30, 1940, after allowing the annual exclusions and any portion of the claimed and allowed specific lifetime exemption.

Date Tax Due

Returns and payments required to be made shall be filed with the Secretary of Revenue and the tax paid on or before the 15th day of April of the calendar year immediately following the year in which the gift or gifts are made.