Part 2: What is the Oregon Natural Resource Exclusion, and how does it work?

The Oregon Natural Resource Exclusion allows qualifying estates to exclude a certain amount of value for natural resource properties from the taxable estate for Oregon estate tax purposes.

Key details:

• Exclusion Amount of up to $15 million in value of natural resource property can be excluded from the taxable estate for Oregon estate tax purposes.
• Eligible Property
• Agricultural land, forestland, or land used for commercial fishing operations.
• Property must be used as part of a trade or business related to farming, forestry, or fishing.
• Includes properties such as crops, timber, fishing boats, equipment, and working capital tied to the natural resource‐related business.

Requirements:

• The property must have been used in the trade or business for at least five out of the eight years before the decedent’s death.
• Heirs must commit to continuing the qualifying use of the property for five out of eight years following the decedent’s death to maintain eligibility.
• The decedent must have owned the property outright or in certain qualifying ownership structures (e.g., family‐owned businesses).

If you have an interest in discovering more about the OR-NRE or the OR-NRC, look for our three next issues, where we’ll outline both programs, or call our office to speak with Joseph Lewis or Glenn Munro.