SB 1511
Converts the $1 million exclusion for an estate subject to tax to a deduction of $2.5 million
Jurisdiction
Oregon
Session
2026 Regular Session
At the request of
(at the request of Senate Interim Committee on Finance and Revenue)
Committee
Revenue
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Sign in to take actionPublic sentiment
Support
41%
Oppose
59%
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill significantly increases the amount of an Oregon estate that is exempt from state estate tax. Currently, estates valued at $1 million are exempt, but this bill raises that threshold to $2.5 million. The bill also phases in the estate tax above this deduction, raises the filing threshold for estate tax returns, and adjusts the deduction and filing threshold for inflation. The Legislative Revenue Officer will study the estate tax and provide findings to legislative committees by December 1, 2027.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Senate Interim Committee on Finance and Revenue
Arguments in favor
Reasons to support this legislation.
Supporters of the bill argue that Oregon's estate tax exemption should be increased to match federal and other states' levels, with some testifiers recommending a threshold of $2.5 million indexed to inflation. This change would aim to protect middle-class families from unintended tax burdens and prevent "estate tax refugees" from leaving the state due to high taxes. By modernizing the estate tax, lawmakers can maintain revenue for essential services, address income and wealth inequality, and promote equity and efficiency in the tax system.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of Senate Bill 1511-A express concerns that the proposed estate tax increase will have a disproportionate impact on small and family-owned businesses, forcing owners to pay for expensive estate planning if they want to keep their business in the family. They argue that the current exemption of $1 million is a burden for these businesses and that the bill does not adequately address Oregon's estate tax challenges. Additionally, opponents claim that the proposed legislation will disincentivize growth and investment in Oregon, as well as lead to more taxpayers leaving the state due to the increased tax rates and potential "claw back" approach. Some also argue that the bill is unfair, particularly for estates over $2.5 million, and that it may drive successful individuals away from contributing to their communities through volunteering and philanthropy.
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