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Hearing on HB 2,362 Seeks $1.5 Million Additional Estate Exemption Phased Out by $8.5M
Summary
House Bill 2,362 would add a $1.5 million additional exemption to Oregon's estate tax for estates under $4.5 million and then phase that additional exemption down to zero for estates of $8.5 million or more; proponents said the change would protect family farms and small businesses from forced sales.
The House Committee on Revenue heard testimony April 3 on House Bill 2,362, which would add a supplemental estate-tax exemption of $1,500,000 for estates with taxable value up to $4,500,000 and then phase that additional exemption down to zero for estates with taxable value at $8,500,000 or more. The bill would leave Oregon’s current base exclusion ($1,000,000) in place.
Representative Bobby Levy (R-House District 58) testified in strong support, saying many rural households and family businesses are "land rich and cash poor" and that Oregon’s $1,000,000 threshold is outdated. Levy highlighted regional differences in farmland values and said the change would reduce instances where families must sell land or businesses to meet estate-tax obligations.
Tax Fairness Oregon expressed opposition, arguing that raising exemptions is a targeted benefit for a very small number of estates and that state revenue is at risk; the organization urged caution given competing needs for resources to support low-income Oregonians. Marcia Kelly of the Oregon Women’s Rights Coalition indicated concerns about timing and revenue projections amid shifting federal resources for social programs.
Anthony Smith of the National Federation of Independent Business testified in support, framing the measure as one of three "pillars" for modernizing estate-tax policy: portability, raising the threshold and indexing to inflation. Legislative Revenue Office staff explained the bill’s mechanics in detail: the supplemental exemption would be $1,500,000 for estates under $4,500,000, stepping down by $300,000 increments across four brackets until it phases out at $8,500,000; estates above $8,500,000 would retain the base $1,000,000 exclusion only.
Ending: The committee closed the public hearing; no formal votes or amendments were recorded on April 3. Committee members asked for further technical information from the Legislative Revenue Office to understand revenue impacts and potential interactions with other bills under consideration.
