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Oregon House Democrats Pass Legislation

to Help Family Farms, Fishing and

Small Forest Operations

SALEM -- Oregon House Democrats, despite vocal objections from 16 Republican House members, approved legislation Friday that will protect Oregon’s small family agricultural operations by cutting inheritance taxes on family farm, fishery and woodlot operations that are handed down to heirs.

The bill, passed on a 41-18 vote, was supported by the Oregon Farm Bureau, Oregon Wine Association, the Oregon Cattlemen’s Association and the Oregon Association of Nurseries. The bill fixed implementation problems with legislation passed in 2007.

The bill allows natural resource land to remain in production by allowing for a tax credit on inheritance taxes when owners of small family farm, fish or forest land interests die. The bill does have requirements that at least one heir must continue to operate the family farm as long as the estate largely comprised of natural resources.

“This bill is for Oregon’s small family farmers, fishermen and foresters,” said House Majority Leader Dave Hunt (D-Clackamas County). “After passing this law in 2007, we found some technical problems with implementation. Together, farmers, winemakers, attorneys, accountants, the fishing industry, tree growers, and legislators rolled up their sleeves and found solutions to a bill that will help preserve Oregon's natural resources and keep Oregon's families on their farms.”

State Rep. Phil Barnhart (D-Central Lane and Linn counties), chair of the House Revenue Commitee, said the tremendous input of the agriculture community and hard work by attorneys and CPAs who handle estate transactions allowed the Legislature to fix the problems from the 2007 bill without having an adverse impact on the state economy.

“This will protect everyone from cattle ranchers in eastern Oregon to woodlots and family farms in the Willamette valley, to fishermen on the coast.”

“This change will allow small businesspeople to pass along their businesses to their heirs rather than liquidate their assets to pay the taxes,” said Barnhart. “It allows us to maintain what keeps Oregon so special – our commitment to preserving our valuable farm and forest land from development or from being overtaken by huge commercial agricultural interests.”

The original legislation in 2007 was sponsored by State Rep. Deborah Boone (D-Cannon Beach) and State Rep. Brian Clem (D-Salem).