Filed: February 2, 2012

IN THE SUPREME COURT OF THE STATE OF OREGON

GAIL RASMUSSEN and BETHANNE DARBY, Petitioners,

v.

JOHN R. KROGER, Attorney General, State of Oregon, Respondent.

(SC S059448)

En Banc
On objections to modified ballot title filed December 5, 2011; considered and under advisement on December 29, 2011.

Aruna A. Masih, Bennett, Hartman, Morris & Kaplan, LLP, Portland, filed the response for petitioners.

Judy C. Lucas, Assistant Attorney General, Salem, filed the response for respondent. With her on the response were John R. Kroger, Attorney General, and Mary H. Williams, Solicitor General.

Kevin L. Mannix, Kevin L. Mannix, P.C., Salem, filed the memorandum of amicus curiae Robert Zielinski, Jr.

PER CURIAM

Ballot title modified and certified to the Secretary of State.PER CURIAM 1

This matter is before the court following the filing by the Attorney Gene ral 2
of a modified ballot title for Initiative Petition No. 18 (2012) in response to this court's 3

decision in Rasmussen v. Kroger , 351 Or 358, ___ P3d ___ (2011). On December 12, 4

2011, Robe rt Zielinski, Jr., a chief petitioner on the initiati ve petition, sought the court's 5
permission to appear as amicus curiae to object to the Attorney General's modified ballot 6

title. See ORAP 11.30(8) (describing procedure). The court granted leave to Zie linski to 7

appear as amicus curiae and state his objections to the modified ballot title. 8
The court has considered Zielinski's objections and, with the exception of 9
the objection discussed below, rejects them. 10
One of Zielinski's objections is well

- taken . The summary in the Attorney 11
General's modified ballot title states that the initiative petition, if approved by the voters, 12
will prohibit the imposition of i nheritance taxes on property of a person dying on or after 13
"January 1, 2016." Zielinski correct ly points out that the accurate date for that statement 14
in the summary is January 1, 2013 . Petitioners Rasmussen and Darby and the Attorney 15
General agree with that objection. 16
Because of the error noted above, the Attorney General's modified ballot 17

title does not substantially comply with statutory requirements. To remedy the problem, 18
the court will modify the ballot title and certify the modified ballot title, set out in 19
Appendix A, to the Secretary of State. ORS 250.085(10)(b) (describing procedure). 20
Ballot title modified and certified to the Secretary of State. 21APPENDIX A

Nullifies existing inheritance tax on estates of $1 million, prohibits taxing

family property transfers

Result of "Yes" Vote: "Yes" vote nullifies, prohibits exist ing inheritance tax on

estates of $1 million or more, other death

- related or family property transfers; reduces

state revenue.

Result of "No" Vote: "No" vote retains existing inheritance tax on estates of $1

million or more; retains tax on all income

- pro ducing property transfers between family

members.

Summary: Current law imposes a one

- time inheritance tax on estate of person

dying on or after January 1, 2012, if its gross value

-- determined by federal laws as of

December 31, 2010

-- is at least $1 mi llion. Current law taxes income

- producing property

sales, regardless of parties' relationship. Measure nullifies existing inheritance tax, tax on

property transfers between "family members" (defined), and tax on property transferred

in connection with a p erson's death; prohibits imposition of such taxes on property of a

person dying on or after January 1, 2013. State may cooperate with other states and

federal government in administering their estate/inheritance taxes; permits fees on

probate, other trans actions that occur following person's death. Measure reduces state

revenues; provides no replacement. Other provisions.