Oregon legislation · 2025 Legislative Measures
Oregon HB3630: Relating to estate tax treatment of natural resource property; and prescribing an effective date.
Status: Chaptered, August 13, 2025
Digest: The Act would make it so estates would not pay estate tax for farm, forestry or fishing interests that are owned by trusts and businesses. (Flesch Readability Score: 63.0). Modifies exemption from the taxable estate for the value of natural resource property to accommodate interests owned through a trust or business entity. Adds detail to look-back and look-forward provisions as applicable to entities. Allows for replacement property. Applies to estates of decedents dying on or after July 1, 2025. Takes effect on the 91st day following adjournment sine die.
What the bill says
From the enrolled text, June 26, 2025:
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session House Bill 3630 Sponsored by Representative MANNIX; Representatives DIEHL, HARBICK, LEVY B, LEWIS, RESCHKE, WRIGHT, Senators HAYDEN, SMITH DB, STARR CHAPTER ................................................. Relating to estate tax treatment of natural resource property; creating new provisions; amending ORS 118.010 and 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) "Eligible business entity" means a business entity that is owned 100 percent by family members or eligible entities. (b) "Eligible entity" means an eligible business entity or an eligible trust. (c) "Eligible trust" means a trust or subtrust whose permissible distributees are all family members or eligible entities. [(a)] (d) "Family member" means a person within the third degree of relation, by blood, marriage, adoption, civil union or domestic partnership, to another person. (e) "Interest in natural resource property" (B) An ownership interest or beneficial interest in a business entity that owns natural resource property, either directly or indirectly through other business entities, but only to the extent of the value of that portion of the interest that is attributable to natural resource property and to the associated farm business, forestry business or fishing business owned by the decedent; or (C) Any beneficial interest in a trust that owns natural resource property, but only …