The tax rates imposed on the remaining estate are designed to absorb the maximum credit for state death taxes allowed by the federal government. Returns on taxable estates must be filed with the Department of Revenue Estate Tax Division within nine months after death. The gasoline and diesel motor vehicle license tax is an ad valorem tax levied in lieu of property taxes. Payments are due upon purchase of a vehicle with annual renewals on a staggered system throughout the year. Gasoline and diesel fuel are taxed at 18 cents a gallon.
Commercial vehicles have an additional weight-distance charge.
These benefits will only be taxed in the U.S. and changes will be retroactive to January 1, 1996. As these changes have been made retroactively, all Canadian taxes withheld from the benefits paid to you in 1996 and 1997 will be available for refund. Note, changes in the tax treaty cannot result in more tax payable than what has already been paid. It is up to the individual to choose to be taxed in the country with the lower rate of tax. How to calculate If the tax you would be required to pay in the U.S. is less than the Canadian tax withheld in 1996 or 1997, you can choose to report your Canadian benefits on your U.S. tax return for each year, and apply to Revenue Canada for a refund of the Canadian tax withheld.