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Frustrated that lawmakers again failed to raise Oregon’s $1 million estate tax threshold, Kevin Mannix has decided to take the issue directly to voters.
After another legislative session in which some lawmakers tried again — and failed again — to raise the $1 million threshold at which Oregon’s estate tax kicks in, state Rep. Kevin Mannix, R-Salem, and Michelle Mhoon have filed a ballot initiative to do away with the tax completely.
Initiative Petition 51, the “End the Death Tax Act,” would do away with the estate tax for Oregonians who die after Jan. 1, 2027. In their July 15 filing, Mannix and Mhoon aim to place the initiative on the 2026 ballot.
The issue has surfaced repeatedly in Salem, in part because Oregon is one of only a dozen states that levies an estate tax at all. Lawmakers have made certain changes over the years to benefit families who own natural resources businesses, but the tax for individuals has remained unchanged for decades.
In March, the Common Sense Institute published a white paper on the estate tax which compared Oregon to other states.
State estate tax thresholds and rates
| State | Exemption | Rate range |
|---|---|---|
| Connecticut | $13,990,000 | 12% |
| Hawaii | $5,490,000 | 10%-20% |
| Illinois | $4,000,000 | 0.8%-16% |
| Maine | $7,000,000 | 8%-12% |
| Maryland | $5,000,000 | 0.8%-16% |
| Massachusetts | $2,000,000 | 0.8%-16% |
| Minnesota | $3,000,000 | 13%-16% |
| New York | $7,160,000 | 3.06%-16% |
| Oregon | $1,000,000 | 10%-16% |
| Rhode Island | $1,802,431 | 0.8%-16% |
| Vermont | $5,000,000 | 16% |
| Washington | $2,193,000 | 10%-20% |
| D.C. | $4,873,200 | 11.2%-16% |
Oregon’s estate tax brings in a lot of money: $339 million in 2024, according to the Legislative Revenue Office. That number has increased 297% over the past decade, more than any other source of significant state revenue.
The estate tax in Oregon applies to estates worth more than $1 million.
In the debate over House Bill 2301, which would have raised the threshold to $7 million and lowered the tax rate to 7%, both sides presented compelling arguments. (Mannix, a prolific ballot measure author and wily dealmaker, was a co-chief sponsor of the bill.)
Proponents, including Oregon Business and Industry, argued the $1 million threshold has remained unchanged since 2002, even as the value of property, stocks and other assets have skyrocketed, creating an incentive for people to move away from Oregon, taking their wealth and its benefits to the community with them.
Opponents, including Tax Fairness Oregon and the Oregon Center for Public Policy, argued the tax affects relatively few people, supports basic public services and that raising the threshold would increase the yawning gap between rich and poor. The bill died in committee.
Oregon voters have considered the issue before. In 2012, Measure 84 proposed a gradual phase-out of the tax. Voters rejected it 54% to 46%.
Petitioners must now gather 1,000 sponsorship signatures to begin the ballot title process. If they achieve that goal, they must then gather 117,173 valid signatures to qualify for the November 2026 ballot.
