SB 1511 – Requires the Legislative Revenue Officer to study the estate tax. Directs the Legislative Revenue Officer to submit findings to the interim committees of the Legislative Assembly related to revenue not later than December 1, 2027.
AMENDED BILL:
• Estates less than $2.5 million do not owe tax
• Estates at/over $3 million = 100% tax from table
• Estates between $2.5 million and $3 million phase in tax from table
• Tax is a percent of tax from table
• $2.5M = 0% of tax from table
• $2.6M = 20% of tax from table
• …
• $2.9M = 80% of tax from table
• Tax rates increased to make expected impact of policy minimal net revenue reduction in in fiscal year 2028
• $2.5 million for start of tax phase-in is indexed to inflation starting in 2028 leading to revenue reductions in fiscal years 2029 and later
There has been media coverage about Oregon being “the most expensive place to die,” and that wealthy families are leaving the state as a result. By offsetting the revenue lost from raising the estate tax exemption from $1 million to $2.5 million through increasing the rates of the tax (including imposing a top marginal rate of 19.9%), the bill would continue to disincentivize growth and investment in Oregon.
Since SB 1511 is a bill that increases tax rates, it violates the Origination Clause of the Oregon Constitution. Oregon is surrounded by states without the tax, such as California, Nevada, and Idaho, or that have a higher exemption like Washington. The Tax Foundation reports that only 12 states and the District of Columbia still have an estate tax, 38 states DO NOT.
To keep more high income families and businesses from leaving Oregon, support Representative Kevin Mannix’s petition to abolish this duplicate Oregon death tax (estate tax) for the November ballot. This bill was drafted (SB 1511) to subvert the petition. This bill tweaks the death tax so it exempts a few more Oregonians at the bottom of the scale while at the exact same time RAISING the death tax rate for higher valued estates. SB 1511 raising the death tax rates for higher-value estates will only continue the exodus of business owners leaving the state to avoid the tax.