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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3428
Sponsored by Representative BOICE
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 adds a new estate tax exclusion of $1 million. (Flesch Readability Score: 72.6).
Allows an additional estate tax exclusion of $1 million.Adjusts for inflation.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to exclusions 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 chapter 118.
SECTION 2.(1) In addition to any other amounts allowed under this chapter, an exclu-
sion in the amount of $1 million is allowed against the tax due under this chapter.
(2) Beginning January 1, 2027, the Department of Revenue shall annually adjust the ex-
clusion amount in subsection (1) of this section according to the cost-of-living adjustment for
the calendar year. The department shall make this adjustment by multiplying $1 million by
the percentage, if any, by which the monthly averaged U.S. City Average Consumer Price
Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the
monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months
ending August 31, 2024.
(3) As used in this section, “U.S. City Average Consumer Price Index” means the Con-
sumer Price Index for All Urban Consumers (All Items), as published by the Bureau of Labor
Statistics of the United States Department of Labor.
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:
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 1922 HB3428
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(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) The exclusion 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%
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.
[2] HB3428
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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 estates of 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.
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