Starting on January 1, 2012, what was known as the Oregon Inheritance tax was renamed to the Oregon Estate Transfer Tax. The updated version of the Oregon estate tax applies to those who die on or after January 1, 2012. The Oregon Department of Revenue is responsible for overseeing and collecting Oregon estate tax.
Following is an overview of the current estate tax laws in effect for New York. If you are looking for information about federal income tax, please visit our web site’s “Tax Relief” page.
What are estate taxes?
An estate refers to a person’s property left behind at the time of the person’s death. It is customary that upon death a person’s property will pass to another person through either a will or under the guidance of applicable state or federal laws.
For the transfer of property through an estate, government agencies including a few states and the federal government through the Internal Revenue Service (IRS) impose tax on such transfers against the estate itself. Since the property is going to a person or persons who did not pay for the property or an interest in the property, the transfer is treated as income when it exceeds a certain threshold and therefore a tax is imposed on the estate. This is the estate tax.
Who is required to file the Oregon Estate Transfer tax?
Decedents must file an estate tax return if the decedent was a resident of Oregon at the time of his death or the estate includes real or tangible personal property having an actual location in Oregon.
What are the thresholds where Oregon estate taxes apply?
The estate of a decedent must pay Oregon estate tax if the gross value of all assets in the estates exceeds $1 million.
What forms must I file related to Oregon estate taxes? And where do I file the forms?
For deaths on or after January 1, 2012, the executor of the estate must file Form OR 706 Oregon Estate Transfer tax return, 150-104-001. For death occurring prior to January 1, 2012, the executor must use form IT-1 Oregon Inheritance tax return.
The appropriate forms can be mailed to the following address:
Oregon Department of Revenue
PO Box 14110
Salem, OR 97309-0910
Alternatively, the appropriate forms may be delivered by a primate delivery service to:
Oregon Department of Revenue
955 Center Street NE
Salem, OR 97301-2555
When must I file forms related to Oregon estate taxes?
Oregon estate tax returns and payments are due nine months after the date of death. This means the executor must file the appropriate form—either Form OR 706 or Form IT-1 as appropriate—by this date. In addition, payment of any estate tax owed is due by this date.
If the executor cannot file the appropriate forms within nine months of the date of death, he can request an extension of time to file using Form 4768. However, any estate tax owed is still due within nine months of the date of death. The executor must separately request an extension of time to pay any estate tax due within nine months of the date of death, but for any unpaid estate tax as of this date, the Oregon Department of Revenue will still assess interest and penalties even with an approve extension of time to pay.
Who can I contact if I have questions about Oregon estate taxes?
If you need help with Oregon estate taxes or with any other tax questions, you should call the telephone number located at the top of this page. You can speak with a tax attorney who is familiar with Oregon and federal estate tax laws who will be able to answer all of your questions. The initial conversation is free of charge and will obligate you to nothing further, so please make the call and get answers to your questions today.
Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.