Oregon Revised Statutes
As used in ORS 118.005 to 118.540, unless the context requires otherwise: “Beneficiary” means the recipient of a beneficial interest in property or the income therefrom transferred in a manner taxable under ORS 118.005 to 118.540. “Department” means the Department of Revenue. “Director” means the Director of the Department of Revenue. “Executor” means th…
Any term used in ORS 118.005 to 118.540 has the same meaning as when used in a comparable context in the laws of the federal Internal Revenue Code relating to federal estate taxes, unless a different meaning is clearly required or the term is specifically defined in ORS 118.005 to 118.540. Any reference in ORS 118.005 to 118.540 to the Internal Revenue Code …
As used in this section: “Nonresident decedent” means an individual who is domiciled outside of Oregon on the date the individual dies. “Resident decedent” means an individual who is domiciled in Oregon on the date the individual dies. A tax is imposed upon a transfer of the property of each: Resident decedent; and Nonresident decedent whose estate incl…
As used in this section and ORS 118.016, “permissible distributee” has the meaning given that term in ORS 130.010. Oregon special marital property consists of any trust or other property interest, or a portion of a trust or property interest: In which principal or income may be accumulated or distributed to or for the benefit of only the surviving spouse o…
The executor of an estate containing property that the executor seeks to qualify as Oregon special marital property under ORS 118.013 shall make an election under this subsection in order for the property to be Oregon special marital property. The election shall be made: By attaching a statement to the estate tax return for the estate of the decedent that i…
The tax provided for in ORS 118.010 shall take effect at and accrue upon the death of the decedent. A return shall be filed and the tax shall be paid to the Department of Revenue no later than 12 months following the date of death of the decedent. If the department determines, pursuant to an amended return or refund claim, that the amount of tax imposed by O…
In the case of an estate that contains a qualified family-owned business interest, an additional tax shall be imposed under ORS 118.005 to 118.540 if: The value of the interest was originally taken as a deduction under section 2057(a) of the Internal Revenue Code in computing the value of the taxable estate for federal estate tax purposes; and An additiona…
As used in this section: “Adjusted gross estate” means the value of the gross estate reduced by the sum of the amounts allowable under sections 2053 and 2054 of the Internal Revenue Code. “Family member” means a member of the family, as defined in section 2032A of the Internal Revenue Code, of the decedent. “Farm business” means a business operated for th…
As used in this section: “Eligible business entity” means a business entity that is owned 100 percent by family members or eligible entities. “Eligible entity” means an eligible business entity or an eligible trust. “Eligible trust” means a trust or subtrust whose permissible distributees are all family members or eligible entities. “Family member” means…
The definitions in ORS 315.124 apply to this section. If, at the date of death, a decedent held the certification for a credit under ORS 315.124, the estate of the decedent shall be allowed a credit for use of the small forest owner minimum option, as provided in ORS 315.124, to the extent that the credit has not been used to offset income taxes. If the fo…
Except as provided in subsection (2) of this section: An inheritance tax return is not required with respect to the estates of decedents who die on or after January 1, 1987, and before January 1, 2003, unless a federal estate tax return is required to be filed; An inheritance tax return is not required with respect to the estates of decedents who die on or…
At any time within three years after the date that an estate tax return is filed, the Department of Revenue may give notice of deficiency as prescribed in ORS 305.265. If the department finds that the value of the gross estate has been undervalued on the estate tax return by an amount greater than 25 percent, notice of deficiency may given at any time withi…
The provisions of ORS chapter 305 as to the audit and examination of reports and returns, determination of deficiencies, assessments, claims for refund, conferences and appeals to the Oregon Tax Court, and the procedures relating thereto, shall apply to the determination of estate taxes under this chapter, except where the context requires otherwise.
LIEN; PAYMENT; COMPROMISE OF TAX
All heirs, legatees, devisees, administrators, executors and trustees, and any grantee or donee under a conveyance or gift made during the grantor’s or donor’s life if the conveyance or gift is subject to tax under ORS 118.010, are, respectively, liable for any and all taxes mentioned in ORS 118.010, with interest thereon, until the same have been paid as in…
Upon application of the executor and the securing of all taxes that are payable by bond, deposit or other good collateral acceptable to the Department of Revenue, the department may extend the time for payment of any part of the amount imposed by ORS 118.005 to 118.540. The extension under this section shall be for a period not in excess of 14 years from th…
The period prescribed for the Department of Revenue to allow or make a refund of any tax, or portion of tax, paid under this chapter shall be as provided in ORS 314.415. Note: 118.227 was added to and made a part of ORS chapter 118 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further expla…
Every tax imposed by ORS 118.005 to 118.540 is a lien upon the property embraced in any inheritance, devise, bequest, legacy or gift until paid, and the person to whom such property is transferred, and the personal representatives and trustees of every estate embracing such property are personally liable for such tax until its payment, to the extent of the v…
The taxes imposed by ORS 118.005 to 118.540 are payable to the Department of Revenue. The department shall give the personal representative, trustee or other person paying such tax, a receipt. The department shall issue to any interested person demanding the same a copy of a receipt that may have been given by such department for the payment of tax under O…
If no return has been filed as required by this chapter, there shall be added to the amount of tax required to be shown on the return a delinquency penalty of five percent of the amount of such tax. If the failure to file a return continues for a period in excess of three months after the due date, there shall be added to the amount of tax required to be sh…
If the executor or trustee of an estate makes a written application to the Department of Revenue for a determination of the tax due under this chapter and discharge from personal liability therefor, the department shall notify the executor or trustee of the amount of tax due under this chapter. The department shall give this notice: As soon as possible, and…
Except as to real property located outside of the state passing in fee from the decedent owner, the tax imposed under ORS 118.010 shall be assessed against and be collected from property of every kind, which, at the death of the decedent owner is subject to, or thereafter, for the purpose of distribution, is brought into this state and becomes subject to the…
Every executor, administrator or trustee has power to sell as much of the property embraced in any inheritance, devise, bequest or legacy, as will enable the executor, administrator or trustee to pay the tax imposed by ORS 118.005 to 118.540, in the same manner as the executor, administrator or trustee is authorized to do for the payment of the debts of a de…
If any bequest or legacy is charged upon or payable out of any property, the heir or devisee shall deduct from the property the tax imposed by ORS 118.005 to 118.540 and pay the tax to the administrator, executor or trustee, and the tax shall remain a lien or charge on the property until paid. The payment thereof shall be enforced by the executor, administra…
Any beneficiary of any property chargeable with a tax under this chapter and personal representatives and trustees, may elect, on or before the date on which the estate tax is due and payable under ORS 118.100, not to pay the tax until the person or persons beneficially interested therein shall come into actual possession or enjoyment thereof. If it is perso…
If a foreign executor, administrator or trustee assigns or transfers any stock or obligations in this state standing in the name of the decedent, or in trust for a decedent, liable to any such tax, the tax shall be paid to the Department of Revenue on or before the transfer thereof, and no such assignment or transfer is valid unless such tax is paid.
Whenever an estate, devise, legacy or beneficial interest therein, charged or sought to be charged with the estate tax is of such nature or is so disposed that the liability of the same is doubtful, or the value thereof cannot with reasonable certainty be ascertained under the provisions of law, the Department of Revenue may compromise with the beneficiaries…
ADMINISTRATION OF ESTATE TAX ACT
The Oregon Tax Court has sole jurisdiction to hear and determine all questions arising under the provisions of ORS 118.005 to 118.540, and to any act in relation thereto authorized by law to be done by such court in other matters or proceedings coming within its jurisdiction.
The net revenue from the taxes imposed by ORS 118.005 to 118.540 (including temporary payments under ORS 118.260 and fees, taxes, interest and penalties), after deduction of refunds, shall be credited to the General Fund to be available to meet any expense or obligation of this state lawfully incurred.
It shall be unlawful for the Department of Revenue or any of its officers or employees to divulge or make known in any manner any particulars disclosed in any return or supporting data required under this chapter. Except for executors or beneficiaries and their authorized representatives, it shall be unlawful for any person or entity who has acquired informa…
If the Department of Revenue determines that the executor has not made an appraisal that is needed in order to comply with the provisions of ORS 118.005 to 118.540, the department may cause an appraisal to be made by a fee appraiser to so ensure compliance. The cost of the appraisal including the appraiser’s fee as a witness in the event of an appeal shall …
When the Department of Revenue and the taxing official of one or more other states each claims that the state of that official respectively was the domicile of the decedent for the purpose of estate taxes or claims taxing authority over the same property in an estate, the department may negotiate, and enter into an agreement, with the taxing official of the …
PENALTIES
Failure, neglect or refusal by any person in possession or control of any record, file or paper containing information relating to the estate of a deceased person or any interest therein to exhibit the same upon the written request of the department specifying and describing such instrument is a misdemeanor. Any person who willfully makes a false statement …