Committee hears divided testimony on SB 124 to raise estate-tax exemption and index it to inflation

Summary

Supporters including bank and small-business groups told the Senate Finance and Revenue Committee that Oregon’s $1 million estate-tax exemption and current rates harm family businesses and farmers; opponents urged retention of revenue for social programs and questioned revenue loss estimates. No vote was taken at the hearing.

On Feb. 10, 2025, the Oregon Senate Committee on Finance and Revenue held a public hearing on Senate Bill 124, a bill that would establish an additional estate-tax exemption (amount to be determined in the bill text), require the Department of Revenue to determine annual cost-of-living adjustments and apply the change to estates of decedents who die on or after Jan. 1, 2026.

Proponents from banking and business groups told the committee the state’s low $1 million exemption and top rates (testimony cited a 10–16% range) are forcing some family-owned businesses, especially asset-rich/cash-poor operations, to restructure, sell or take on debt to pay taxes. Scott Bruin, president and CEO of the Oregon Bankers Association, said the tax “disrupts families, disrupts businesses, disrupts jobs,” and argued SB 124’s combination of a higher exemption and lower rates would support small-business viability.

Anthony…

Committee hears divided testimony on SB 124 to raise estate-tax exemption and index it to inflation

Summary

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