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April 2010 Inheritance Tax Advisory
Natural Resource and Fishing Business Property credit. The Oregon Natural Resource and Fishing Business Property credit is available for deaths on or after January 1, 2007. ORS 118.140 allows the credit. See our Form IT-1 instructions for line 18 and use the Oregon Schedule NRC when claiming the credit.
 
New Form IT-1A
Form IT-1A, Additional Oregon Inheritance Tax, is available. This form is for an heir who's received property that was claimed a natural resource credit (NRC) and the heir disposed of the property early. The heir may owe additional taxes if the property was used for qualifying purposes for less than 5 out of 8 years after the decedent's date of death. Form IT-1A.
 
NEW information:Natural resource property exclusion. In the 2010 special session of the Oregon Legislature, House Bill (HB) 3696* passed and affects a limited number of estates with natural resource property. Please read below.
*In 2010, HB 3696, sections 85-88, specifically apply to Oregon's inheritance tax.

Was the decedent's date of death on or after January 1, 2007 and before March 11, 2008?
  • If no, stop here; the new law in HB 3696, related to natural resource property exclusion, does not apply to the estate.
  • If yes, continue:

 
If you have determined the estate would have qualified for the NRE, please complete Form NRE. With the refund application, you will complete an "as if" 2007 Form IT-1 and Schedule NRE.
 
If you have questions about the Form NRE refund application, please contact the department:
 
E-mail: estate.help.dor@state.or.us
Taxpayer assistance: 503-378-4988; or toll free from an Oregon prefix, 1-800-356-4222.
 

 
Connection to the Internal Revenue Code (IRC)
Oregon inheritance tax law is tied to federal estate tax law as of December 31, 2000.
  • Compute tentative tax on taxable estate using Table A.
  • Compute Oregon Inheritance Tax using Table B.
 
Oregon inheritance tax is 100 percent of the state death tax credit allowed by 2000 federal law, not the reduced amount as allowed on the 2002-2004 federal estate return (Form 706).
 
As of 2005, the federal estate tax law allows the state death tax as a deduction on Form 706. Oregon does not allow the calculation of taxable estate after the state death tax deduction.
 

Consent to Transfer Stock

Have you been asked to obtain a consent to transfer stock or a stock waiver certificate from the Department of Revenue? If the date of death is 1987 or later, it is no longer necessary to obtain the department's consent to transfer stocks, bonds, and mutual funds owned by decedents whose deaths occurred on or after January 1, 1987. The repeal of Oregon Revised Statute 118.230 went into effect on September 27, 1987. Therefore, the department does not have jurisdiction to provide a release of any of the above-mentioned assets for deaths in 1987 and later.

If the date of death was before 1987, please contact the department for the application for consent to transfer stock. You may e-mail your request.
 
 
Forms and instructions
 
Contact us with questions about inheritance tax.