Bill > SB764

This bill introduces a new estate tax exemption for family-owned businesses in Oregon, specifically allowing an exemption from estate tax for business interests that meet certain criteria. The bill defines a "family-owned farm or business" as an enterprise where 75% or more is owned by family members (defined as persons within the third degree of relation by blood, marriage, adoption, civil union, or domestic partnership). To qualify for the exemption, the business interest must have been held by the decedent for at least one year before their death and must be transferred to one or more family members upon the owner's death. Importantly, estates claiming this new exemption cannot also claim other existing estate tax credits or exemptions. The bill will apply to estates of decedents who die on or after January 1, 2026, and will take effect on the 91st day after the adjournment of the 2025 regular legislative session. By creating this exemption, the bill aims to help preserve family-owned businesses by reducing the potential tax burden that might otherwise force heirs to sell the business to pay estate taxes.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB764