Phases Out Existing Inheritance Taxes on Large Estates, and All Taxes on Intra-Family Property Transfers

Oregon Ballot Measure - Measure 84

Election: Nov. 6, 2012 (General)
Outcome: Failed

Yes: 776143  (45.96%) Argument For
No: 912541  (54.04%) Argument Against

Categories:

Summary

Ballot Measure 84 incrementally reduces, and then eliminates, estate tax or other taxes upon transfer of property at a person’s death or upon transfers of property among family members. The measure first applies to estates of decedents who die during calendar year 2013. For 2013 estates, the tax is 75 percent of the tax that would be due if the death occurred just before passage of the measure. Under the measure, the amount of tax is reduced by an additional 25 percent for each subsequent year, with no tax on estates of people dying in 2016 or later.

Except for the amount allowed by the phase-out of any existing estate or inheritance tax, the measure prohibits the imposition, by the state or any other unit of government, of any tax upon transfer of property at a person’s death or upon transfers of property among family members. The measure does not prohibit fees and income taxes upon estates or cooperation by this state with other states and the federal government in the collection of estate and inheritance taxes.

Current Oregon law imposes an estate tax if a decedent’s taxable estate exceeds $1 million. It does not impose any tax on the first $1 million in the taxable estate. The law allows estates to take various additional deductions and exclusions before tax is imposed. Current law also allows a credit, under certain conditions, up to $7.5 million against estate taxes for property that was used by the decedent in a farm, forestry or fishing business. The rate of estate tax is graduated and ranges from 10 percent of the Oregon taxable estate to a marginal rate of 16 percent for Oregon taxable estates that exceed $9.5 million.

Current Oregon law imposes a tax on certain transfers of property from one family member to another family member. The measure phases out such taxes and eliminates them entirely as of January 1, 2016.

Measure Text

Phases out existing inheritance taxes on large estates, and all taxes on intra-family property transfers.

Result of "Yes" Vote: "Yes" vote phases out existing inheritance/estate taxes on large estates, death-related property transfers, and taxes on certain intra-family property transfers; reduces state revenue.

Result of "No" Vote: "No" vote retains existing estate/inheritance taxes on estates with value of at least $1 million; tax on all income-producing intra-family property transfers.