Section 118.010 - Imposition and amount of tax in general; Oregon taxable estate; out-of-state property; nonresident decedents; rules(1) As used in this section:(a) "Nonresident decedent" means an individual who is domiciled outside of Oregon on the date the individual dies.(b) "Resident decedent" means an individual who is domiciled in Oregon on the date the individual dies.(2) A tax is imposed upon a transfer of the property of each: (a) Resident decedent; and(b) Nonresident decedent whose estate includes any interest in:(A) Real property located in Oregon; or(B) Tangible personal property located in Oregon.(3) The Oregon taxable estate to be used for purposes of computing the tax imposed under this section shall be the federal taxable estate:(a) Increased by: (A) The deduction for state estate, inheritance, legacy or succession taxes allowable under section 2058 of the Internal Revenue Code; and(B) If the decedent is a surviving spouse owning the property at death, the value of the following property unless included in the federal taxable estate: (i) Property for which a deduction for Oregon special marital property under ORS 118.016 was previously allowed; or(ii) Property for which a separate Oregon election under section 2056 or 2056A of the Internal Revenue Code was previously allowed; and(b) Reduced by: (A) The value on the date of the decedent's death of all Oregon special marital property under ORS 118.013;(B) The exemption allowed under ORS 118.145; and(C) Any other applicable exclusions or deductions.(4) The tax imposed under this section shall be calculated by applying the rates in the following table. If the Oregon taxable estate is at least the amount in column 1, but less than the amount in column 2, the tax is the amount in column 3, increased by the excess above the amount in column 1 multiplied by the percentage in column 4: ______________________________________________________________________________
1 | 2 | 3 | 4 |
$1,000,000 | $1,500,000 | $0 | 10.0% |
1,500,000 | 2,500,000 | 50,000 | 10.25% |
2,500,000 | 3,500,000 | 152,500 | 10.5% |
3,500,000 | 4,500,000 | 257,500 | 11.0% |
4,500,000 | 5,500,000 | 367,500 | 11.5% |
5,500,000 | 6,500,000 | 482,500 | 12.0% |
6,500,000 | 7,500,000 | 602,500 | 13.0% |
7,500,000 | 8,500,000 | 732,500 | 14.0% |
8,500,000 | 9,500,000 | 872,500 | 15.0% |
9,500,000 | 1,022,500 | 16.0% |
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(5) In the case of a resident decedent owning, on the date of the decedent's death, real property located outside Oregon or tangible personal property located outside Oregon, the tax imposed under this section shall be the amount determined under subsection (4) of this section multiplied by a ratio. The numerator of the ratio shall be the sum of the value of the decedent's real property located in Oregon, tangible personal property located in Oregon and intangible personal property. The numerator may not include any intangible personal property subject to a tax imposed, as a result of the death of the decedent, by another state or country. The denominator of the ratio shall be the total value of the decedent's gross estate.(6) In the case of a nonresident decedent owning, on the date of the decedent's death, real property located in Oregon or tangible personal property located in Oregon, the tax imposed under this section shall be the amount determined under subsection (4) of this section multiplied by a ratio. The numerator of the ratio shall be the sum of the value of the decedent's real property located in Oregon and tangible personal property located in Oregon. The denominator shall be the total value of the decedent's gross estate.(7) Payment, in whole or in part, of estate taxes from funds of an estate or trust on any benefit subject to tax under ORS 118.005 to 118.540 is not to be considered a further taxable benefit, when such payment is directed by the decedent's will or by a trust agreement.(8)(a) If the federal taxable estate is determined by making an election under section 2031(c), 2032, 2032A, 2056 or 2056A of the Internal Revenue Code or another provision of the Internal Revenue Code, or if a federal estate tax return is not required under the Internal Revenue Code, an executor may make separate elections for state estate tax purposes under that same provision.(b) An executor may make elections under ORS 118.013, 118.140 and 118.145 and section 2056 of the Internal Revenue Code for state estate tax purposes.(c) Elections described in this subsection are irrevocable.Amended by 2023 Ch. 286, § 3, eff. 9/24/2023.Amended by 1955 c.727 §1; 1959 c.418 §1; 1965 c.470 §1; 1969 c.591 §213; 1975 c.685 §3; 1977 c.666 §2; 1997 c.99 §7; 2003 c. 806, § 6; 2011 c. 526, § 3