File #: 18-271    Version: 1 Name: Construction Excise Tax for Affordable Housing
Type: Policy Status: Agenda Ready
File created: 5/30/2018 In control: City Commission
On agenda: 6/6/2018 Final action:
Title: Construction Excise Tax for Affordable Housing
Sponsors: Laura Terway
Attachments: 1. Staff Report, 2. Senate Bill 1533, 3. Frequently Asked Questions, 4. Oregon Housing Alliance CET Tracker, 5. City of Milwaukie, 6. City of Corvallis, 7. City of Newport, 8. City of Bend, 9. City of Eugene, 10. City of Astoria, 11. City of Grants Pass, 12. Lane County
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Title

Construction Excise Tax for Affordable Housing

 

Body

RECOMMENDED ACTION (Motion):

Provide direction if staff should continue to investigate a construction excise tax for affordable housing.

 

BACKGROUND:

Senate Bill 1533 enabled jurisdictions to implement a construction excise tax (CET) for affordable housing.

 

Residential Construction:

Local jurisdictions may levy a tax of up to 1% of the permit value on residential construction.  The revenue is required to be allocated toward:

   50% Incentives for developers to create affordable housing

   35% Affordable housing programs

   15% Oregon Housing and Community Services to be used for programs providing down payment assistance

 

Commercial and Industrial:

Local jurisdictions may levy a limitless tax on the permit value of commercial and industrial development. At least half of revenues must go toward the jurisdiction’s housing-related programs.