Inside Salem

By Rep. Jeff Helfrich, For The Mountain Times

For years, as Oregonians we have heard the phrase, “Don’t die in Oregon.” It gets a laugh sometimes, but it’s a very real concern shared by farmers, small business owners, and families across our state. Our estate tax has become badly outdated, and more people are being caught up in it every year. For those who don’t know, Oregon taxes estates valued over $1 million — one of the lowest thresholds in the nation — even though home values, farmland, equipment costs, and retirement savings have all dramatically increased over the last two decades.

The reality is this: in many parts of Oregon, a family farm, a modest business, and a home can easily push an estate above that threshold without anyone ever considering themselves “wealthy.” The federal estate tax exemption now sits at $15 million per individual. That gap matters. It means Oregon families are often paying a state estate tax long before they would ever face a federal one. It also means many families are spending thousands of dollars on accountants and attorneys simply to avoid a tax that many believe no longer reflects the modern economic reality. Oregon stands increasingly alone. Thirty-eight states now have no estate tax at all. States like Idaho, Nevada, Arizona, and Florida continue attracting retirees, business owners, and investment because they’ve created tax environments that encourage people to stay, invest, and pass businesses on to the next generation.

I’ve heard from business owners who have considered relocating. I’ve spoken with families worried they may have to sell timber ground, equipment, or portions of a family operation just to cover a tax bill after losing a loved one. Even estate planning professionals acknowledge the threshold has not kept pace with inflation or property values. This should concern all of us. If Oregon wants to remain competitive, especially as neighboring states aggressively recruit businesses and retirees, we need to have an honest conversation about reform.

The question is, should Oregon raise the exemption threshold from $1 million to something more realistic and index it to inflation going forward? Should we create protections specifically for family farms and small businesses, so the next generation is not forced to liquidate assets simply to pay taxes? Or should Oregon join most states and eliminate the estate tax entirely?

I believe Oregonians deserve a tax system that encourages people to build a future here. We also need policies that recognize the difference between generational wealth built through multinational corporations, and a lifetime of work poured into a family farm, a small business, or a home. The goal should not be punishing success or forcing families to protect what they’ve already spent a lifetime building. This conversation is coming, whether Salem wants to have it or not. Which is why I ask you to reach out and engage on this topic and share your thoughts so we can come up with a viable Oregon solution. We owe it to those who are left behind when we move on.

As always, you can reach me at Rep.JeffHelfrich@oregonlegislature.com or 503-986-1452