Revenue
Legislative Report - Week of 4/7
Revenue Team
Coordinator: Peggy Lynch
Please see Governance Overview here.
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Revenue Updates
Revenue Updates
By Natalie Briggs
House bill 2732 proposes increasing the tax credit for farmers who donate crops to charitable organizations. The bill proposes raising the tax credit from 15% to 25% of the value of the quantity of the crop donated at the wholesale market price. The bill incentivizes farmers to donate surplus or unsold crops to charitable organizations, where the exemption would offset economic costs associated with harvesting, transporting, and donating crops. Increasing the tax credit to 25% is projected to increase the amount of donated produce from 7lb/dollar of tax credit to 10.75lb/dollar of tax credit. House revenue committee members inquired about the impact of recent cuts to federal funding for food banks and schools in Oregon. Oregon Food Bank has confirmed that 30 truck loads of food donation ordinarily supplied through federal funds have been canceled. This cancelation is expected to impact the Oregon Food Bank beginning in the 2025 spring/summer time frame. Cuts to Local Food Purchase Assistance Cooperative Agreements will also take place in October 2025.
House bills 3688 and 3934 relate to proposed revisions to Oregon estate taxes. Proponents of the bills argue that current Oregon estate taxes do not allow for portability of estate tax exemptions from one spouse to another, upon the death of a spouse. While estate tax exemptions may be preserved upon the death of a spouse through the use of trust funds, this requires advanced estate planning and support from financial experts which may not be feasible or realistic for many Oregonians. The above bills would reform Oregon estate tax policy to allow for portability of estate tax exemptions. Proponents argue that such changes to estate tax policy would bring Oregon in line with changes made to federal estate tax exemption policy during the Obama administration.
House bill 2362 aims to implement tiered estate tax exemptions based on the size of the taxable estate. The exemption amount would vary based on the estate's value, and would phase out for larger estates. As a result, this bill would modernize Oregon’s estate tax exemption policy with respect to inflation and appreciation of assets over time. Opponents argue that the bill disproportionately benefits Oregonians with large estates, while providing no benefit to middle and working class families. Additionally, opponents argue that exemptions would reduce state revenue which is becoming even more critical due recent cuts to federal funding.