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:
(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:
(a) Resident
decedent; and
(b) Nonresident
decedent whose estate includes any interest in:
(A) Real property
located in Oregon; or
(B) Tangible
personal property located in Oregon.
(3) The Oregon
taxable estate to be used for purposes of computing the tax imposed under this
section shall be the federal taxable estate:
(a) Increased by:
(A) The deduction
for state estate, inheritance, legacy or succession taxes allowable under
section 2058 of the Internal Revenue Code; and
(B) If the
decedent is a surviving spouse owning the property at death, the value of the
following property unless included in the federal taxable estate:
(i) Property for
which a deduction for Oregon special marital property under ORS 118.016 was
previously allowed; or
(ii) Property for
which a separate Oregon election under section 2056 or 2056A of the Internal
Revenue Code was previously allowed; and
(b) Reduced by:
(A) The value on
the date of the decedent’s death of all Oregon special marital property under
ORS 118.013;
(B) The exemption
allowed under ORS 118.145; and
(C) Any other
applicable exclusions or deductions.
(4) The tax
imposed under this section shall be calculated by applying the rates in the
following table. If the Oregon taxable estate is at least the amount in column
1, but less than the amount in column 2, the tax is the amount in column 3,
increased by the excess above the amount in column 1 multiplied by the
percentage in column 4:
______________________________________________________________________________
1 2 3 4
$1,000,000 $1,500,000 $0 10.0%
1,500,000 2,500,000 50,000 10.25%
2,500,000 3,500,000 152,500 10.5%
3,500,000 4,500,000 257,500 11.0%
4,500,000 5,500,000 367,500 11.5%
5,500,000 6,500,000 482,500 12.0%
6,500,000 7,500,000 602,500 13.0%
7,500,000 8,500,000 732,500 14.0%
8,500,000 9,500,000 872,500 15.0%
9,500,000 1,022,500 16.0%
______________________________________________________________________________
(5)(a) In the
case of a resident decedent owning, on the date of the decedent’s death, real
property located outside Oregon or tangible personal property located outside
Oregon, the tax imposed under this section shall be the amount determined under
subsection (4) of this section multiplied by a ratio.
(b) The numerator
of the ratio:
(A) Shall be the
sum of the value of the decedent’s real property located in Oregon, tangible
personal property located in Oregon and intangible personal property.
(B) May not
include any intangible personal property subject to a tax imposed, as a result
of the death of the decedent, by another state or country.
(C) May not
include the value of the exemption allowed under ORS 118.145.
(c) The
denominator of the ratio shall be the total value of the decedent’s gross
estate, less the value of the exemption allowed under ORS 118.145.
(6) In the case
of a nonresident decedent owning, on the date of the decedent’s death, real
property located in Oregon or tangible personal property located in Oregon, the
tax imposed under this section shall be the amount determined under subsection
(4) of this section multiplied by a ratio. The numerator of the ratio shall be
the sum of the value of the decedent’s real property located in Oregon and
tangible personal property located in Oregon, less the value of the exemption
allowed under ORS 118.145. The denominator shall be the total value of the
decedent’s gross estate, less the value of the exemption allowed under ORS
118.145.
(7) Payment, in
whole or in part, of estate taxes from funds of an estate or trust on any
benefit subject to tax under ORS 118.005 to 118.540 is not to be considered a
further taxable benefit, when such payment is directed by the decedent’s will
or by a trust agreement.
(8)(a) If the
federal taxable estate is determined by making an election under section
2031(c), 2032, 2032A, 2056 or 2056A of the Internal Revenue Code or another
provision of the Internal Revenue Code, or if a federal estate tax return is
not required under the Internal Revenue Code, an executor may make separate
elections for state estate tax purposes under that same provision.
(b) An executor
may make elections under ORS 118.013, 118.140 and 118.145 and section 2056 of
the Internal Revenue Code for state estate tax purposes.
(c) Elections
described in this subsection are irrevocable. [Amended by 1955 c.727 §1; 1959
c.418 §1; 1965 c.470 §1; 1969 c.591 §213; 1975 c.685 §3; 1977 c.666 §2; 1997
c.99 §7; 2003 c.806 §6; 2011 c.526 §3; 2023 c.286 §3; 2025 c.577 §2]
Notes of Decisions
Force v. Dep't of Revenue, 252 P.3d 306 (Or. 2011).
· cites it 18× “The statute provides that “[t]he tax provided for in ORS 118.010 shall be paid to the Department of Revenue on the date the federal estate tax is payable.”
Tharalson v. State Dep't of Revenue, 573 P.2d 298 (Or. 1978).
“ORS 118.010. The rate of the tax on an estate is determined by the amount of the estate subject to the tax, according to the following table set forth in ORS 118.”
Hardwick v. Dep't of Revenue, 535 P.2d 89 (Or. 1975).
· cites it 5× “Therefore, ORS 118.010 is inapplicable. Perhaps the most persuasive indication that the legislature did not intend to create an election between gift and inheritance tax treatment of the creation of joint interests is the fact that federal law upon which Oregon tax law is based…”
Est. of Evans v. Dept. of Rev., 492 P.3d 47 (Or. 2021).
· cites it 3× “ORS 118.010(3). Returning to the facts of this case, Gillam’s will had provided that, upon his death, certain of his assets—including stocks, bonds, and similar intangible property held in Montana banks and investment firms—would be placed in a testamentary trust established…”
Unander v. PASQUILL, 319 P.2d 579 (Or. 1957).
· cites it 2× “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…”
Est. of Seitz v. Dep't of Revenue, 6 Or. Tax 241 (Or. T.C. 1975).
· cites it 4× “The Oregon inheritance tax statute, ORS 118.010, requires that: “(1) All property and any interest therein, within the jurisdiction of the state, * * * which passes or vests by survivorship, will or by statutes of inheritance * * * or by deed, grant, bargain, sale or gift, * * *…”
Seymour v. Dep't of Revenue, 809 P.2d 100 (Or. 1991).
· cites it 2× “, 229 Or 609, 615-16 , 368 P2d 342 (1962), the court observed that: “[I]t appears to be the policy of the legislature to tax by one scheme the passing of property upon death (ORS 118.010), and to tax by a different scheme income from a wide variety of sources (ORS 316.”
Est. of Sleeter v. Dep't of Revenue, 5 Or. Tax 600 (Or. T.C. 1974).
· cites it 8× “The plaintiff contends that the mere possibility of receipt by the decedent’s widow of social security benefits at age 60 should not be included, at its “present” (or any) value, in the net estate of the deceased and, therefore, should not be taxed under ORS 118.010 (1) and…”
Arnold v. Dep't of Revenue, 7 Or. Tax 485 (Or. T.C. 1978).
“As stated in PI Memo 2, at lines 6-16: "Plaintiff’s contention is this: Where a decedent, during his or her lifetime, and while domiciled in one state, creates an irrevocable trust of which he or she is the life income beneficiary, and, after creating the trust, becomes…”
Bechtel v. State Tax Comm'n, 363 P.2d 1102 (Or. 1961).
· cites it 3× “It is argued that because ORS 118.010 treats property held under survivorship as passing to the survivor for inheritance tax purposes the word “inheritance” in ORS 316.”
Hardwick v. Dep't of Revenue, 5 Or. Tax 582 (Or. T.C. 1974).
· cites it 13× “The question of law presented is: Did the severance of the joint tenancy with right of survivor- *583 ship in certain mutual fund shares, which occurred just prior "to the decedent’s death, result at that time in a gift to the decedent’s wife which is subject to Oregon…”
Est. of Anderson v. Dep't of Revenue, 6 Or. Tax 339 (Or. T.C. 1976).
“IH 75-8, dated June 18, 1975, levying tax against the entire balance of the joint accounts pursuant to ORS 118.010(2) (a). Issues were raised as to the court’s jurisdiction to try the suit and, on the merits, as to the legal nature of joint bank deposits.”
— Or. Rev. Stat. § 118.010(1) — 5 cases
Est. of Seitz v. Dep't of Revenue, 6 Or. Tax 241 (Or. T.C. 1975).
“The Oregon inheritance tax statute, ORS 118.010, requires that: “(1) All property and any interest therein, within the jurisdiction of the state, * * * which passes or vests by survivorship, will or by statutes of inheritance * * * or by deed, grant, bargain, sale or gift, * * *…”
— Or. Rev. Stat. § 118.010(2) — 5 cases
Force v. Dep't of Revenue, 252 P.3d 306 (Or. 2011).
“The statute provides that “[t]he tax provided for in ORS 118.010 shall be paid to the Department of Revenue on the date the federal estate tax is payable.”
Hardwick v. Dep't of Revenue, 535 P.2d 89 (Or. 1975).
“Therefore, ORS 118.010 is inapplicable. Perhaps the most persuasive indication that the legislature did not intend to create an election between gift and inheritance tax treatment of the creation of joint interests is the fact that federal law upon which Oregon tax law is based…”
Est. of Anderson v. Dep't of Revenue, 6 Or. Tax 339 (Or. T.C. 1976).
“IH 75-8, dated June 18, 1975, levying tax against the entire balance of the joint accounts pursuant to ORS 118.010(2) (a). Issues were raised as to the court’s jurisdiction to try the suit and, on the merits, as to the legal nature of joint bank deposits.”
— Or. Rev. Stat. § 118.010(2)(a) — 2 cases
Hardwick v. Dep't of Revenue, 535 P.2d 89 (Or. 1975).
“Therefore, ORS 118.010 is inapplicable. Perhaps the most persuasive indication that the legislature did not intend to create an election between gift and inheritance tax treatment of the creation of joint interests is the fact that federal law upon which Oregon tax law is based…”
— Or. Rev. Stat. § 118.010(3) — 7 cases
Est. of Evans v. Dept. of Rev., 492 P.3d 47 (Or. 2021).
“ORS 118.010(3). Returning to the facts of this case, Gillam’s will had provided that, upon his death, certain of his assets—including stocks, bonds, and similar intangible property held in Montana banks and investment firms—would be placed in a testamentary trust established…”
Hardwick v. Dep't of Revenue, 535 P.2d 89 (Or. 1975).
“Therefore, ORS 118.010 is inapplicable. Perhaps the most persuasive indication that the legislature did not intend to create an election between gift and inheritance tax treatment of the creation of joint interests is the fact that federal law upon which Oregon tax law is based…”
Seymour v. Dep't of Revenue, 809 P.2d 100 (Or. 1991).
“, 229 Or 609, 615-16 , 368 P2d 342 (1962), the court observed that: “[I]t appears to be the policy of the legislature to tax by one scheme the passing of property upon death (ORS 118.010), and to tax by a different scheme income from a wide variety of sources (ORS 316.”
— Or. Rev. Stat. § 118.010(3)(a) — 1 case
— Or. Rev. Stat. § 118.010(8) — 1 case
— Or. Rev. Stat. § 118.010(l)(c) — 1 case
Arnold v. Dep't of Revenue, 7 Or. Tax 485 (Or. T.C. 1978).
“As stated in PI Memo 2, at lines 6-16: "Plaintiff’s contention is this: Where a decedent, during his or her lifetime, and while domiciled in one state, creates an irrevocable trust of which he or she is the life income beneficiary, and, after creating the trust, becomes…”
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