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.