Makes an interest in a family-owned business not taxed by the estate tax.
Allows an exclusion from a taxable estate for the value of the interest in a family-owned business. Applies to estates of decedents who die on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.
(a) “Family member” means a person within the third degree of relation, by blood, marriage, adoption, civil union or domestic partnership, to another person.
(b) “Family-owned farm or business” means any farm or ranch, or other business enterprise operated for the primary purpose of obtaining a profit in money, if 75 percent or more of the business enterprise is owned by one or more family members.
(2) An interest held by a decedent in a family-owned farm or business for one year or more before the death of the decedent is exempt from the tax imposed under this chapter if the interest is transferred, as a consequence of the decedent’s death, to one or more family members of the decedent.
(3) An estate claiming the exemption under this section may not claim the credit allowed under ORS 118.140 or the exemption allowed under ORS 118.145.
Despite all the caveats, it’s an improvement.