Relating to exclusions from estate tax; prescribing an effective date.
Summary
HB 3428 would create a new $1 million exclusion against Oregon estate tax liability, in addition to existing exclusions and deductions. Beginning January 1, 2027, the Oregon Department of Revenue would annually adjust that exclusion for inflation using the U.S. City Average Consumer Price Index. The bill also makes conforming changes to Oregon’s estate tax calculation rules in ORS 118.010 to account for the new exclusion and to clarify how the taxable estate is computed.
The measure applies to estates of decedents dying on or after January 1, 2026, and takes effect on the 91st day after adjournment sine die. It preserves Oregon’s existing estate tax structure, including the graduated rate table, but reduces the taxable estate by the new exclusion before the tax is calculated. It also retains and clarifies provisions for resident and nonresident decedents, special marital property, and separate state-level elections tied to certain federal estate tax elections.
Impact
HB 3428 would reduce estate tax liability for affected estates by allowing an additional $1 million exclusion and indexing that exclusion for inflation starting in 2027. It amends ORS 118.010, the core Oregon estate tax statute, to incorporate the new exclusion into the taxable estate calculation and to make related technical adjustments. The bill would primarily affect estates of decedents with taxable estates above the new threshold, as well as the Department of Revenue, which would be responsible for administering the annual inflation adjustment.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears to be a tax-relief proposal aimed at reducing estate tax burdens and providing inflation protection over time. The absence of recorded legislative history means sentiment cannot be assessed beyond the bill’s apparent policy direction.
Contention
The main policy issue likely to draw attention is the revenue impact of expanding the estate tax exclusion, since a larger exclusion would reduce tax collections from larger estates. Supporters would likely frame the bill as tax relief and a modernization measure through inflation indexing, while opponents could argue it narrows the estate tax base and benefits only higher-value estates. The bill also makes technical changes to Oregon’s estate tax computation and election rules, but those appear secondary to the central dispute over the size and indexing of the new exclusion.