Chapter 118 — Chapter 118
92 sections in this chapter.
ORS 118.005 Definitions for ORS 118.005 to 118.540. As used in ORS 118.005 to 118.540, unless the context requires otherwise
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(1) “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. (2) “Department” means the Department of Revenue. (3) “Director” means the Director of the Department of Revenue. (4) “…
ORS 118.007 Connection to federal law; meaning of terms. 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 means the federal Internal Revenue Code as amended and in effect on December 31, 2010, except where the Legislative Assembly has specifically provided otherwise. [2003 c.806 §2; 2011 c.526 §2]
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[Repealed or reserved.]
ORS 118.009 [2003 c.806 §1a; repealed by 2011 c.526 §29]
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[Repealed or reserved.]
ORS 118.010 Imposition and amount of tax in general; Oregon taxable estate; out-of-state property; nonresident decedents; rules. (1) As used in this section
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(a) “Nonresident decedent” means an individual who is domiciled outside of Oregon on the date the individual dies. (b) “Resident decedent” means an individual who is domiciled in Oregon on the date the individual dies. (2) A tax is imposed upon a transfer of the property of each:…
ORS 118.013 Taxable estate adjustment for Oregon special marital property; rules. (1) As used in this section and ORS 118.016, “permissible distributee” has the meaning given that term in ORS 130.010
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(2) Oregon special marital property consists of any trust or other property interest, or a portion of a trust or property interest: (a) In which principal or income may be accumulated or distributed to or for the benefit of only the surviving spouse of the decedent during the lif…
ORS 118.016 Oregon special marital property election; rules; form. (1) 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
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(a) By attaching a statement to the estate tax return for the estate of the decedent that identifies the trust or other property interest that constitutes Oregon special marital property and that affirms that the identified property meets the requirements of Oregon special marita…
ORS 118.019 [2005 c.124 §4; repealed by 2011 c.526 §29]
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[Repealed or reserved.]
ORS 118.020 [Amended by 1961 c.455 §1; 1963 c.135 §1; 1971 c.652 §1; 1973 c.793 §1; 1977 c.666 §3; 1987 c.293 §67; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.025 [1987 c.646 §12; 1989 c.625 §80; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.030 [Repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.035 [1973 c.759 §2; 1975 c.685 §4; 1977 c.666 §4; 1989 c.224 §8; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.037 [1975 c.685 §2; repealed by 1977 c.666 §36]
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[Repealed or reserved.]
ORS 118.040 [Amended by 1959 c.418 §2; 1977 c.666 §5; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.050 [Amended by 1955 c.727 §2; 1963 c.392 §1; 1967 c.485 §1; 1975 c.687 §1; 1977 c.666 §6; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.060 [Repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.070 [Amended by 1955 c.727 §3; 1959 c.418 §3; 1961 c.455 §2; 1963 c.283 §1; 1965 c.470 §2; 1969 c.493 §74; 1973 c.132 §1; 1973 c.299 §1; 1973 c.703 §1; 1975 c.762 §2; 1977 c.666 §7; 1983 c.632 §1; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.075 [1963 c.435 §6; 1969 c.493 §75; repealed by 1977 c.666 §36]
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[Repealed or reserved.]
ORS 118.080 [Amended by 1959 c.418 §4; 1961 c.455 §3; 1973 c.703 §2; 1975 c.762 §3; 1977 c.666 §8; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.085 [1971 c.593 §2; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.090 [Amended by 1963 c.68 §1; 1977 c.666 §16; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.095 [1969 c.112 §1; repealed by 1977 c.666 §36]
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[Repealed or reserved.]
ORS 118.100 Time for filing return and paying tax; refunds; interest; effects of change in federal estate tax return or special valuation disqualification. (1) 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 ORS 118.010 is less than the amount theretofore paid, the excess tax shall be refunded by the department with interest at the rate established by ORS 305.220 for a period beginning 45 days after the due date of the return or on the date the amended return or refund claim is filed, whichever is later, and ending at the time the refund is made
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(2) If the amount of federal estate tax reported on a federal estate tax return is changed or corrected by the Internal Revenue Service or other competent authority, resulting in a change in the Oregon taxable estate, the executor shall report the change or correction in federal …
ORS 118.110 [Amended by 1953 c.704 §1; 1961 c.455 §4; 1973 c.268 §1; 1975 c.685 §5; 1977 c.666 §10; 1979 c.582 §2; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.120 Qualified family-owned business interests; additional tax. (1) 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
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(a) 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 (b) An additional federal estate tax is imposed with respect to the qualified fam…
ORS 118.140 Credit based upon value of natural resource property; rules. (1) As used in this section
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(a) “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. (b) “Family member” means a member of the family, as defined in section 2032A of the Internal Revenue Code, of th…
ORS 118.145 Natural resource property exempted. (1) As used in this section
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(a) “Eligible business entity” means a business entity that is owned 100 percent by family members or eligible entities. (b) “Eligible entity” means an eligible business entity or an eligible trust. (c) “Eligible trust” means a trust or subtrust whose permissible distributees are…
ORS 118.150 [Formerly 118.640; 1971 c.652 §2; 1973 c.498 §1; 1975 c.762 §4; 1977 c.666 §11; 1985 c.761 §1; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.152 Credit allowed for use of small forest owner minimum option. (1) The definitions in ORS 315.124 apply to this section
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(2) 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 of…
ORS 118.155 [1973 c.503 §13; 1975 c.762 §5; 1977 c.666 §11a; 1979 c.553 §12; 1981 c.804 §70; 1991 c.459 §341; repealed by 1997 c.99 §24]
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[Repealed or reserved.]
ORS 118.160 When tax return is required; lists of property transfers and other data. (1) Except as provided in subsection (2) of this section
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(a) 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; (b) An inheritance tax return is not required with respect to the es…
ORS 118.165 Notice of deficiency. (1) 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
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(2) 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 within five years after the date that the return is filed. (3) The limitations to the givi…
ORS 118.170 [1969 c.591 §221; 1971 c.567 §6; repealed by 1977 c.870 §16 (118.171 enacted in lieu of 118.170)]
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[Repealed or reserved.]
ORS 118.171 Application of ORS chapter 305. 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. [1977 c.870 §17 (enacted in lieu of 118.170, 118.180 and 118.360); 1995 c.650 §50; 2011 c.526 §9]
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[Repealed or reserved.]
ORS 118.180 [Formerly 118.700; 1971 c.567 §7; 1973 c.100 §1; 1975 c.762 §6; repealed by 1977 c.870 §16 (118.171 enacted in lieu of 118.180)]
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[Repealed or reserved.]
ORS 118.190 [1973 c.100 §2; repealed by 1977 c.870 §59]
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LIEN; PAYMENT; COMPROMISE OF TAX
ORS 118.210 Liability for 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 ORS 118.005 to 118.540 provided
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[Repealed or reserved.]
ORS 118.220 [Amended by 1973 c.254 §1; 1975 c.762 §7; 1977 c.666 §13; 1997 c.99 §9; repealed by 2011 c.526 §29]
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[Repealed or reserved.]
ORS 118.225 Extension of time for payment. (1) 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
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(2) The extension under this section shall be for a period not in excess of 14 years from the date prescribed by ORS 118.100 for payment of the tax. (3) Under rules prescribed by the department, the department may extend the time for the payment of any deficiency of a tax imposed…
ORS 118.227 Time period for refund. 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. [2009 c.358 §3]
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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 explanation.
ORS 118.230 Lien of tax; liability for payment; assessment and collection of taxes. (1) 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 value of such property
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(2) Taxes imposed under ORS 118.005 to 118.540 may be assessed and collected by the Department of Revenue in the same manner as income taxes are assessed and collected under ORS chapter 314. The department may issue a warrant as provided in ORS 314.430 and record the warrant in t…
ORS 118.240 [Amended by 1973 c.254 §2; 1997 c.99 §11; repealed by 2011 c.526 §29]
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[Repealed or reserved.]
ORS 118.250 To whom tax payable; issuing receipts. (1) The taxes imposed by ORS 118.005 to 118.540 are payable to the Department of Revenue
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(2) The department shall give the personal representative, trustee or other person paying such tax, a receipt. (3) 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…
ORS 118.260 Penalties for delinquency, failure to file and fraud; interest; deposit where tax not determined. (1) 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
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(2) 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 shown as tax on the return a failure to file penalty of 20 percent of the amount of such tax. This penalty is in addit…
ORS 118.265 Application for determination of tax due; discharge from personal liability; rules. (1) 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
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(a) As soon as possible, and in any event within 18 months of the application; or (b) If the application is made before the return is filed, by the earliest of the following: (A) Eighteen months after the return is filed. (B) The expiration of the period prescribed for the assess…
ORS 118.270 Property from which tax is collectible. 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 jurisdiction of the courts of this state for distributive purposes, or which was owned by any decedent domiciled within the state at the time of the death of the decedent even though the property was situated outside of the state. [Amended by 1997 c.99 §13]
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[Repealed or reserved.]
ORS 118.280 Power to sell for payment of tax; tax lien transferred to proceeds when property of estate sold or mortgaged. (1) 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 decedent
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(2) Any part of the gross estate sold for the payment of claims against the estate and expenses of administration, for the payment of the tax imposed by ORS 118.005 to 118.540, or for purposes of distribution, shall be divested of the lien of such tax, and such lien shall be tran…
ORS 118.290 Duty of recipient when legacy payable out of property; legacy for limited period. (1) 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, administrator or trustee in the same manner that payment of the bequest or legacy is enforced, or by the Department of Revenue in the same manner as income taxes are collected under ORS chapter 314
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(2) If any bequest or legacy is given in money for a limited period, the administrator, executor or trustee shall retain the tax upon the whole amount. If any bequest or legacy is not given in money, the administrator, executor or trustee shall make application to the court havin…
ORS 118.300 Deferred payment election; bond or letter of credit. 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 personal property, the person or persons so electing shall give a bond or irrevocable letter of credit to the state in double the amount of the tax, with such sureties or issued by such insured institution as defined in ORS 706.008 as the Director of the Department of Revenue may approve, conditioned for the payment of the tax and interest thereon, at such time and period as the person or persons beneficially interested therein may come into actual possession or enjoyment of the property, which bond shall be executed and filed, and a full return of the property made to the Director of the Department of Revenue within six months from the date of transfer thereof, as in this section provided. The bond or letter of credit must be renewed every five years. [Amended by 1969 c.591 §216; 1975 c.762 §10; 1977 c.666 §14; 1991 c.331 §34; 1997 c.99 §14; 1997 c.631 §406; 2011 c.526 §13]
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[Repealed or reserved.]
ORS 118.310 Transfer of stock or obligations by foreign representative or trustee; payment of tax prior to transfer. 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
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[Repealed or reserved.]
ORS 118.320 [Amended by 1969 c.178 §1; 1973 c.254 §4; 1975 c.762 §11; 1985 c.85 §6; repealed by 1987 c.646 §9]
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[Repealed or reserved.]