Relating to estate tax treatment of natural resource property; and prescribing an effective date.
Summary
Modifies exemption from the taxable estate for the value of natural resource property to accommodate interests owned through a trust or business entity. Adds detail to look-back and look-forward provisions as applicable to entities. Allows for replacement property. Applies to estates of decedents dying on or after July 1, 2025. Takes effect on the 91st day following adjournment sine die.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2025
Committee Review
Jun 2025
House Passage
Jun 2025
Senate Passage
Jun 2025
Signed into Law
Jul 2025
Introduced Feb 20, 2025
Signed Jul 24, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Enrolled
·
5 edits
·
Jul 24, 2025
MODERATE
The bill was finalized as an enrolled version with additional sponsors and expanded language clarifying property replacement rules. The core estate tax exemption for natural resource property remains substantially the same, but new provisions were added to allow replacement of exempt property with other qualifying property without triggering additional taxes, provided the replacement occurs within specified timeframes and is used in the same business operations.
Scope change
The bill's scope was expanded to include more sponsors and add specific rules about property replacement timelines and conditions for avoiding additional taxes when replacing exempt natural resource property.
SCOPE
Added additional sponsors (Representatives DIEHL, HARBICK, LEVY B, LEWIS, RESCHKE, WRIGHT and Senators HAYDEN, SMITH DB, STARR) to the enrolled version
REQUIREMENT
Added new provision allowing replacement of exempt natural resource property with real or personal property used in farm, forestry, or fishing business operations without triggering additional tax
Added specific timelines for property replacement (one year normally, two years for involuntary conversions) to avoid additional tax liability
Added requirement that replacement property must qualify as natural resource property to maintain exemption status
ENFORCEMENT
Added language clarifying that additional tax liability falls on the property owner at time of disposition and must be paid within six months
Floor votes · House Jun 19, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
19
Key actions
7
Committee
4
Jul 24, 2025
Signed into law
Governor signed.
lower
Jun 27, 2025
Upper · Passed
President signed.
upper
Jun 27, 2025
Lower · Passed
Speaker signed.
lower
Jun 26, 2025
Upper · Passed
Rules suspended. Third reading. Carried by Bonham. Passed.
upper
Jun 26, 2025
Upper · Passed
Recommendation: Do pass.
upper
Jun 19, 2025
Committee
Referred to Rules.
upper
Jun 19, 2025
Introduced
First reading. Referred to President's desk.
upper
Jun 19, 2025
Lower · Passed
Third reading. Carried by Mannix. Passed.
lower
Jun 16, 2025
Lower · Passed
Recommendation: Do pass.
lower
Feb 21, 2025
Committee
Referred to Revenue.
lower
Feb 20, 2025
Introduced
First reading. Referred to Speaker's desk.
lower
1 primary · 9 co-sponsors
Sponsors
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