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Phone: 503-823-7300

Email: bds@portlandoregon.gov

1900 SW 4th Ave, Portland, OR 97201

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2nd Notice: Affordable Housing Construction Excise Tax Effective August 1, 2016

BDS Service Level Update

CUSTOMER & COMMUNITY NOTIFICATION
July 26, 2016

Contact: Ross Caron, BDS Public Information Officer, (503) 823-4268 

2nd Notice: Affordable Housing Construction Excise Tax Effective August 1, 2016

A new Affordable Housing Construction Excise Tax (CET), proposed by the Portland Housing Bureau, will go into effect on August 1, 2016. All construction permits received on or after August 1, 2016, on properties located within the City of Portland with an improvement value of $100,000 or more, will be subject to this CET. The tax will be calculated as 1% of the building permit valuation and the tax revenue will support affordable housing programs.

The Bureau of Development Services (BDS) determines when building permit applications are complete for purposes of assessing the tax. Building permit applications deemed complete by BDS on, or before, July 29, 2016, will not be subject to the Affordable Housing CET. A Building Permit application is deemed complete once all code specific screening is completed and when BDS receives the associated plan review fees. Minimum submittal requirements information is outline belowPlease plan ahead to bring all documents with you for submitting a complete permit application.

A small percentage of construction permits for Facility Permit Program commercial alterations and mobile home park permits will not go into effect until October 31, 2016. These permit types account for approximately 2% of all projects subject to the Affordable Housing CET. This phased approach is necessary to allow for CET fee calculation software programming to be completed.

FAQs
For additional information about the Affordable Housing CET, including exemptions, please see the Frequently Asked Questions (FAQs).
 
For questions about what the tax pays for: Martha Calhoon, Portland Housing Bureau, Martha.calhoon@portlandoregon.gov, or 503-823-3239.

For questions about how the tax is calculated, or about exemptions: Elshad Hajiyev, Bureau of Development Services, Elshad.Hajiyev@portlandoregon.gov, or 503-823-7323.  

Affordable Housing Construction Excise Tax Exemptions

The tax applies to construction permits on properties located within the City of Portland when the improvement value is $100,000 or more. Exemptions are provided for the following:

  • Improvements valued at less than $100,000
  • Accessory dwelling units (through July 30, 2018)
  • Affordable housing for people at or below 80% median family incomes (MFI)
  • Private school improvements
  • Public improvements
  • Public or private hospital improvements
  • Improvements to religious facilities
  • Agricultural buildings
  • Certain not-for-profit care facilities

To demonstrate that a project is exempt from this CET an Affordable Housing Construction Excise Tax Exemption Form must be completed, signed and submitted with your building permit application identifying what exemptions are applicable to the project. 


Building Permit Application Minimum Submittal Requirements

The following information and webpage links provides information to applicants for what is required in order for the City to consider a permit application complete and allow the application to be submitted and plan review fees paid. 

Commercial Projects includes:

One and Two Family Projects includes:

  • Four (4) copies of Site, Architectural, and Structural Drawings for the area of proposed work and areas affected by such work.
  • Structural Calculations—Two (2) set prepared and stamped by the architect or engineer of record for the work covered
  • Soils Report if lot slope exceeds 20%
  • Residential Water Service Application
  • Tree preservation standards apply to projects with ground disturbance activity if the lot is 5,000 square feet or greater 

See Single Family Addition Submittal Requirements for details:

  • Four (4) copies of Site, Architectural, and Structural Drawings for the area of proposed work and areas affected by such work.
  • Structural Calculations—Two (2) set prepared and stamped by the architect or engineer of record for the work covered.
  • Residential Water Service Application
  • Tree preservation standards apply to projects with ground disturbance activity if the lot is 5,000 square feet or greater .