Construction Excise Tax

What is the Construction Excise Tax for Scappoose School District?

The Oregon Legislature passed a law (ORS 320.170) that provides school districts with a financial tool to pay for a portion of the cost for new, updated or expanded facilities as it relates to residential and business development in the community. The law authorizes a school district, in cooperation with cities and counties, to tax certain new residential and non-residential development. Specifically, the tax applies and may be imposed on improvements to real property that result in a new structure or additional square footage in an existing structure.

Open link below to read full Oregon Revised Statutes (ORS) 320.170;

https://www.oregon.gov/DOR/about/Pages/laws.aspx

On May 9, 2022 the Scappoose School Board voted to increase the CET rates to;

• $1.41 per sq. ft. residential 
• $.70 for non-residential developments with a max. non-residential amount set at $35,200.   

Scappoose City Councilor accepted their request via City Ordinance 900 on June 20, 2022 to be effective 30 days after, attached pdf below.

ORS 320.173 Exemptions.  (Must fill out Exemptions Form for approval)

Construction taxes may not be imposed on the following:

      (1) Private school improvements.

      (2) Public improvements as defined in ORS 279A.010.

      (3) Residential housing that is guaranteed to be affordable, under guidelines established by the United States Department of Housing and Urban Development, to households that earn no more than 80 percent of the median household income for the area in which the construction tax is imposed, for a period of at least 60 years following the date of construction of the residential housing.

      (4) Public or private hospital improvements.

      (5) Improvements to religious facilities primarily used for worship or education associated with worship.

      (6) Agricultural buildings, as defined in ORS 455.315 (2)(a).

      (7) Facilities that are operated by a not-for-profit corporation and that are:

      (a) Long term care facilities, as defined in ORS 442.015;  

      (b) Residential care facilities, as defined in ORS 443.400; or

      (c) Continuing care retirement communities, as defined in ORS 101.020. [2007 c.829 §3; 2009 c.534 §2]