Bill > SB485

This bill expands and clarifies the exemption from estate tax for small forestland owners in Oregon. Specifically, the bill introduces a new definition of "small forestland owner" as a decedent who owns between 10 and 5,000 acres of forestland for at least five years prior to their death. The bill creates a new provision that allows estate tax exemption for such small forestland owners if they actively manage their forestland and maintain documentation of appropriate silvicultural or management activities. To qualify for the exemption, the forestland must be transferred to family members who continue to actively manage the property for at least five consecutive years after the decedent's death. If the property is sold or transferred to non-family members during this period, or if the active management requirement is not met, an additional tax will be imposed. The exemption is capped at $15 million for an estate, and estates claiming this exemption cannot also claim a separate credit. The bill applies to estates of decedents who die on or after January 1, 2026, and takes effect 91 days after the 2025 legislative session adjourns.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB485