🏛️ Legislative Proposals in 2025
- SB 405: Introduced in the legislature, this bill would raise the estate tax exemption to $13.61 million—aligning Oregon with the federal basic exclusion, for decedents dying on or after January 1, 2026. As of now, it’s pending in the Senate Finance & Revenue Committee OLIS+2Saalfeld Griggs PC Law+2.
- HB 2301: Proposed raising the exemption to $7 million and turning the tax into a flat 7% rate. It did not pass the legislature Saalfeld Griggs PC Law+1.
- HB 3934: Would have introduced portability—letting a surviving spouse use the decedent’s unused exemption. This also failed in 2025 OLIS+10Saalfeld Griggs PC Law+10Foster+10.
- HB 3844: Aimed to tie Oregon’s exemption to inflation with retroactive relief for deaths back to 2020. This bill died in committee, having no further progression after June 27, 2025 LegiScan.
🌲 Special Relief for Forest and Farm Businesses
- SB 485 A: Passed unanimously in the Senate in May 2025. This bill simplifies the estate tax exemption process for qualifying natural resource properties up to $15 million, reducing overly strict documentation requirements that had hampered small woodland owners. It’s currently under consideration in the House GovDelivery+1.
📬 Proposed Ballot Initiative for 2026
- “End the Death Tax Act”: Filed by Republican Rep. Kevin Mannix, calling for the complete elimination of the Oregon estate tax for deaths after January 1, 2027. This initiative is heading to a 2026 ballot, pending collection of roughly 117,173 valid voter signatures. Mannix previously led unsuccessful legislative efforts to raise exemption thresholds to $7 million Oregon Capital Chronicle.
Our Take: The Oregon Estate Tax is an important source of revenue for the state and should not be repealed. It is unreasonable, however, for the exemption amount to be fixed at $1 million since 2002 and not be indexed for inflation. Having the lowest estate tax exemption of all 50 states is a blackeye for Oregon and is bad for business here in our beloved state. Both political parties should be willing to work together to come up with a common sense solution to this problem in the next legislative session.