Bill > SB485

This bill amends Oregon's estate tax law to create a specific exemption for small forestland owners, defined as those who own between 10 and 5,000 acres of forestland for at least five years prior to their death. The bill introduces a new category of estate tax exemption for these small forestland owners, which allows their heirs to avoid estate taxes if certain conditions are met. These conditions include actively managing the forestland during the five years before and after the owner's death, maintaining appropriate documentation of forestland management activities, and transferring the property to family members who continue to manage the land. If the forestland is sold or transferred to non-family members within five years, or if the management requirements are not met, the estate will be required to pay the additional taxes that would have originally been imposed. The exemption is capped at $15 million for the estate, and estates claiming this exemption cannot also claim a separate credit allowed under existing law. The bill will apply to estates of decedents who die on or after January 1, 2026, and will take effect 91 days after the 2025 regular legislative session adjourns.

Budget and Finance

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