Vote for Wayne Krieger

House Bill 2541 is the final version of my concept brought forth in HB 3479 that started in the process in the 2007 session.  In 2007 I brought together Democrat and Republican Legislators who had a concern as to how the Death tax was adversely and unjustly affecting natural resource properties.  The powers that be cringe when I call the estate tax a death tax, but to me, that is what it is.

Owners of small woodlands, farmers and ranchers and commercial fishermen were finding themselves barrowing large sums of money or mortgaging those properties, to pay a death tax.  The bigger concern was that many families had to sell all or part of those properties or the timber lands had to be harvested, or a fishing boat had to be sold to pay the death tax.  

 These properties may have been in a family for 3-5 generations.  They had paid taxes every year on the property and their income and other taxes and fees in support of their businesses.

It was also evident that there was an environmental benefit to keeping these lands and businesses intact and family owned.  These lands were being managed with a stewardship ethic.  They were found to be providing benefits of clean air, water and enhanced wildlife habitat.  Many had forest management plans which protected natural resource values far beyond what was required by law.

Problems arose around the Department of Revenue’s interpretation of the bill and other issues.

The Oregon Law Commission took the concept of the bill and worked on it for 18 months, making recommendations resulting in House Bill 2541 in 2011.  The bill has now passed the House and Senate and is waiting for the Governor’s signature.

 Natural resource organizations, such as Farm Bureau, The Cattlemen’s Association, Nursery Association, Small Woodland Owners and Commercial Fishermen all supported this bill.

House Bill 2541 should be provided to lawyers and accountants who represent families with natural resource lands or those involved with commercial fisheries.  The bill revises the definition of “natural resource property” to include both real property and personal property (tangible and intangible).  It would provide a state tax credit for qualifying farms for the first $7.5 million of an estate.  It exempts all estates from the state death tax on the first $1 million in value.  Estates valued at over $1 million are taxed at varying rates, starting with a 10% rate and increasing to a 16% rate cap.  Taxes are incurred only on the amount over the $1 million exemption, not on the first $1million value of the estate.

HB 2541 will help owners of small woodlands, farmers, rancher and commercial fishermen keep their businesses within family ownership.  It’s worth discussing whether we should have a death tax at all, but that debate will have to wait for a future session.

This bill in now being sent to the Governor for his signature.