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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2362
Sponsored by Representatives LEVY B, OWENS; Representatives OSBORNE, SMITH G, WRIGHT, Senators NASH,
THATCHER, WEBER (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes a new exemption against Oregon estate tax. (Flesch Readability Score:
61.3).
Provides for an additional exemption against Oregon estate tax. Phases out the availability of
the exemption based on the size of the estate. Applies to the estates of all decedents who die on or
after January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to exemptions from estate tax; creating new provisions; amending ORS 118.010; and pre-
scribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS 118.005 to
118.540.
SECTION 2.(1) An exemption from taxation based on the amount of the Oregon taxable
estate may be allowed under this section.
(2) In order to determine the availability and amount of the exemption, the Oregon tax-
able estate shall first be calculated without the exemption allowed under this section.
(3) Using the amount calculated under subsection (2) of this section, the exemption shall
be determined in accordance with the following table:
If the calculated amount The exemption is:
is:
Less than $4.5 million...... $1.5 million
At least $4.5 million
but less than
$5.5 million.................. $1.2 million
At least $5.5 million
but less than
$6.5 million.................. $900,000
At least $6.5 million
but less than
$7.5 million.................. $600,000
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 250 HB2362
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At least $7.5 million
but less than
$8.5 million.................. $300,000
(4) No exemption is allowed under this section if the amount calculated under subsection
(2) of this section is greater than or equal to $8.5 million.
SECTION 3. ORS 118.010 is amended to read:
118.010. (1) As used in this section:
(a) “Nonresident decedent” means an individual who is domiciled outside of Oregon on the date
the individual dies.
(b) “Resident decedent” means an individual who is domiciled in Oregon on the date the indi-
vidual dies.
(2) A tax is imposed upon a transfer of the property of each:
(a) Resident decedent; and
(b) Nonresident decedent whose estate includes any interest in:
(A) Real property located in Oregon; or
(B) Tangible personal property located in Oregon.
(3) The Oregon taxable estate to be used for purposes of computing the tax imposed under this
section shall be the federal taxable estate:
(a) Increased by:
(A) The deduction for state estate, inheritance, legacy or succession taxes allowable under sec-
tion 2058 of the Internal Revenue Code; and
(B) If the decedent is a surviving spouse owning the property at death, the value of the following
property unless included in the federal taxable estate:
(i) Property for which a deduction for Oregon special marital property under ORS 118.016 was
previously allowed; or
(ii) Property for which a separate Oregon election under section 2056 or 2056A of the Internal
Revenue Code was previously allowed; and
(b) Reduced by:
(A) The value on the date of the decedent’s death of all Oregon special marital property under
ORS 118.013;
(B) The exemption allowed under ORS 118.145; [and]
(C) If applicable, the exemption allowed under section 2 of this 2025 Act; and
[(C)] (D) Any other applicable exclusions or deductions.
(4) The tax imposed under this section shall be calculated by applying the rates in the following
table. If the Oregon taxable estate is at least the amount in column 1, but less than the amount in
column 2, the tax is the amount in column 3, increased by the excess above the amount in column
1 multiplied by the percentage in column 4:
_______________________________________________________________________________________
1 2 3 4
$1,000,000 $1,500,000 $0 10.0%
1,500,000 2,500,000 50,00010.25%
2,500,000 3,500,000 152,500 10.5%
[2] HB2362
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3,500,000 4,500,000 257,500 11.0%
4,500,000 5,500,000 367,500 11.5%
5,500,000 6,500,000 482,500 12.0%
6,500,000 7,500,000 602,500 13.0%
7,500,000 8,500,000 732,500 14.0%
8,500,000 9,500,000 872,500 15.0%
9,500,000 1,022,500 16.0%
_______________________________________________________________________________________
(5) In the case of a resident decedent owning, on the date of the decedent’s death, real property
located outside Oregon or tangible personal property located outside Oregon, the tax imposed under
this section shall be the amount determined under subsection (4) of this section multiplied by a ratio.
The numerator of the ratio shall be the sum of the value of the decedent’s real property located in
Oregon, tangible personal property located in Oregon and intangible personal property. The numer-
ator may not include any intangible personal property subject to a tax imposed, as a result of the
death of the decedent, by another state or country. The denominator of the ratio shall be the total
value of the decedent’s gross estate.
(6) In the case of a nonresident decedent owning, on the date of the decedent’s death, real
property located in Oregon or tangible personal property located in Oregon, the tax imposed under
this section shall be the amount determined under subsection (4) of this section multiplied by a ratio.
The numerator of the ratio shall be the sum of the value of the decedent’s real property located in
Oregon and tangible personal property located in Oregon. The denominator shall be the total value
of the decedent’s gross estate.
(7) Payment, in whole or in part, of estate taxes from funds of an estate or trust on any benefit
subject to tax under ORS 118.005 to 118.540 is not to be considered a further taxable benefit, when
such payment is directed by the decedent’s will or by a trust agreement.
(8)(a) If the federal taxable estate is determined by making an election under section 2031(c),
2032, 2032A, 2056 or 2056A of the Internal Revenue Code or another provision of the Internal Re-
venue Code, or if a federal estate tax return is not required under the Internal Revenue Code, an
executor may make separate elections for state estate tax purposes under that same provision.
(b) An executor may make elections under ORS 118.013, 118.140 and 118.145 and section 2056
of the Internal Revenue Code for state estate tax purposes.
(c) Elections described in this subsection are irrevocable.
SECTION 4. Section 2 of this 2025 Act and the amendments to ORS 118.010 by section 3
of this 2025 Act apply to the estates of all decedents who die on or after January 1, 2026.
SECTION 5.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
[3]