Bill > HB3630

This bill modifies Oregon's estate tax treatment of natural resource property by expanding and clarifying definitions and exemption rules for family-owned agricultural, forestry, and fishing businesses. The bill introduces new definitions such as "eligible business entity" and "eligible entity", and provides a detailed definition of "interest in natural resource property" that includes direct ownership, ownership in business entities, and beneficial interests in trusts. The legislation allows for an estate tax exemption on natural resource property if the property is held for at least five years, the decedent or family members materially participated in the business during those years, and the property is transferred to family members or eligible entities. The bill also establishes rules for property transfers and replacements after the initial transfer, and imposes additional tax liability if certain conditions are not met, such as selling the property to non-family members within five years. The exemption is capped at $15 million for an estate, and the changes will apply to estates of decedents dying on or after July 1, 2025. The primary goal is to provide tax relief and support for family-owned natural resource businesses by making it easier to transfer property across generations without incurring significant estate tax penalties.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3630