End the Death Tax

 Oregon’s death tax hits family farms, small businesses, and middle-class households harder than almost any other state in the nation. IP 51 initiative gives voters the chance to end it.

What Is Oregon’s Death Tax?

Oregon is one of only 12 states that still imposes a tax on the value of a person’s estate after they pass away.  The threshold for the estate tax–also known as the death tax–is the lowest in the country at $1 million and has not been adjusted since it was set in 2001. $1 million may sound like a lot, and in 2001 it was, but as property values and the cost of living have climbed over the past 25 years, more and more Oregon families find themselves subject to the tax upon the death of a loved one. Due to the high rates imposed by the death tax, these grieving families can find themselves in a financial bind due to owing hundreds of thousands of dollars to the state.

Who Does the Death Tax Affect?

Contrary to common perception, Oregon’s death tax does not just affect the wealthy. With property values rising across the state, a growing number of middle-class Oregonians are impacted:

• Retirees
  Many Oregonians who have spent a lifetime saving and building equity in their homes and retirement plans find that the death tax erodes what they had hoped to leave to their children and grandchildren.

• Family Farms and Ranches
  The value of agricultural land often pushes farms and ranches well above the death tax threshold, even when the owner has a modest income. To cover the tax bill, heirs may be forced to sell part or all of their inherited land, which has often been passed down for generations.

• Small Business Owners
  The combined value of business assets, equipment, inventory, and property can easily exceed $1 million. When a small business owner passes away, their heirs face an immediate tax burden that can force the closure or sale of the business.

• Homeowners
  Homeowners, especially in the Portland metro area and other growing areas, have seen the value of their homes drastically increase. In many cases, homes purchased decades ago for a fraction of their current value now push the value of the homeowner’s estate past the $1 million threshold.

The Deadly Impact of the Death Tax

The death tax affects more than individual families. It has broader economic consequences for Oregon:

• Loss of Generational Businesses
  When heirs cannot afford the death tax, family businesses close. As a result, Oregonians lose jobs and the cultural and economic vitality of communities is drained.

• Wealth Migration
  To avoid the death tax, often times families will relocate to states with no death tax like Idaho, Arizona, or Utah, or even to states with higher thresholds. This brings a loss of consumer spending, community investment, and tax revenue.

• Competitive Disadvantage
  Similar to wealth migration, Oregon has a hard time attracting those who are looking to avoid the death tax, meaning the growth of consumer spending, community investment, and tax revenue is significantly stalled.

What IP 51 Does

Initiative Petition 51 fully eliminates the death tax. Oregon would join the 38 other states that do not impose a death tax, and the playing field would be leveled for Oregon families and businesses. IP 51 strengthens Oregon and local communities by keeping families, farms, businesses, and wealth in Oregon.

Eliminating the death tax, the initiative aims to keep families, farms, businesses, and wealth in Oregon — strengthening communities and the state’s economy for future generations.

Help Us End the Death Tax

Ready to help end Oregon’s death tax? Here’s how you can make a difference:

• Sign the Petition
  Your signature helps IP 51 reach the ballot in November.

• Donate
  Contributions to No Tax Oregon, a project of OFC, help us promote tax reform in Oregon by defending Oregonians from bad taxes, keeping Oregonians informed, and organizing signature gathering efforts on tax related IPs.

• Share
  Tell friends, family, and neighbors about this initiative and why it matters for Oregonians.

• Stay Informed
  Follow No Tax Oregon on social media and subscribe to our newsletter for the latest updates and resources.