The Senate Committee on Finance and Revenue convened on May 7, 2025, to discuss significant amendments to estate tax legislation affecting small woodland owners in Oregon. Central to the meeting was Senate Bill 485, which proposes to repeal the estate tax for individuals who pass away on or after January 1, 2025. Additionally, the committee considered a crucial amendment, known as the dash 2 amendment, aimed at refining the qualification criteria for natural resource property tax exemptions.

Senator David Brock Smith, representing Senate District 1, introduced the amendment, emphasizing its importance for small woodland owners who have faced challenges under previous estate tax regulations. The existing law, established in 2023, included a requirement for landowners to demonstrate active management of their properties for 75% of the days over five years prior to and following a decedent's death. This stipulation proved burdensome for small woodland owners, whose management practices differ significantly from those of traditional agricultural operations.

The dash 2 amendment seeks to replace the stringent participation requirement with a more flexible standard that recognizes customary silvicultural practices appropriate to the forest management cycle. This change aims to alleviate the documentation burden on small woodland owners while ensuring that family-owned forests can be passed down without the financial strain of estate taxes.

Support for the amendment was voiced by several witnesses, including representatives from the Oregon Small Woodlands Association. They highlighted the necessity of adapting tax policies to reflect the unique nature of forest management, which often involves longer intervals between active management activities compared to other forms of agriculture.

The committee's discussions underscored the broader implications of the proposed changes, which aim to preserve family-owned forests and promote sustainable land management practices. As the meeting concluded, the committee members acknowledged the importance of the amendment in supporting Oregon's small woodland owners and ensuring the longevity of family forests in the state.