Oregon legislation · 2025 Legislative Measures
Oregon SB485: Relating to estate tax; and prescribing an effective date.
Status: In committee, August 8, 2025
Digest: The Act would expand the conditions under which small forestlands are exempt from estate tax. (Flesch Readability Score: 61.8). [ Digest: The Act would repeal the estate tax. (Flesch Readability Score: 90.9). ] [ Provides that the Oregon estate tax is imposed only on the estates of decedents dying on or before January 1, 2025. ] Modifies the exemption from taxable estate for the value of natural resource property as applicable to forestland. Limits the exemption to small forestland owners and allows an exemption based on active management appropriate for the current phase of the forest management cycle. Applies to estates of decedents dying on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.
What the bill says
From the enrolled text, June 19, 2025:
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session Senate Bill 485 Sponsored by Senators SMITH DB, MEEK, Representatives EDWARDS, OSBORNE; Senator HAYDEN, Representatives DIEHL, HARBICK, LEVY B, MANNIX, RESCHKE, SCHARF (Presession filed.) CHAPTER ................................................. Relating to estate tax; creating new provisions; amending ORS 118.145; and prescribing an effective date. SECTION 1. ORS 118.145 is amended to read: 118.145. (1) As used in this section: (a) "Family member" means a person within the third degree of relation, by blood, marriage, adoption, civil union or domestic partnership, to another person. (b) "Materially participate" means to engage in the active management, as defined in section 2032A of the Internal Revenue Code, of a farm business, forestry business or fishing business owned by the decedent on the date of the decedent's death. The Department of Revenue may adopt rules to administer this section consistent with this definition. (c) "Natural resource property" has the meaning given that term in ORS 118.140. (d) "Small forestland owner" means a decedent who owns, throughout the five years immediately prior to the date of the decedent's death, forestland that is at least 10 acres but fewer than 5,000 acres. (2) Except as provided in subsection (3) of this section, an interest in natural resource property is exempt from the tax imposed under this chapter (b) During at least 75 percent of …