HomeMy WebLinkAboutAdmin Order 53-19-09-FADMINISTRATIVE ORDER NO. 53-19-09-F
ofthe
City Manager
ADOPTION OF CONSTRUCTION EXCISE TAX ADMINISTRATIVE
RULE R-3.730.
The City Manager of the City of Eugene finds that:
A. Pursuant to the authority contained in Sections 2.019 and 3.742 of the Eugene Code,
1971, on May 24, 2019, I issued Administrative Order No. 53-19-09 ordering that notice be given
advising the public of the opportunity to submit comments on my proposal to adopt Construction
Excise Tax Administrative Rule R-3.730 to implement the provisions of Sections 3.730 through
3. 7 48 of the Code regarding a construction excise tax on commercial and residential
improvements.
B. Notice of the proposed Rule adoption was given by providing copies of the Notice
to the Mayor and City Councilors and making copies available to any person who had requested
such notice. The Notice was also published in the Register Guard Newspaper May 30 through
June 3, 2019, and posted on the City's website during the comment period.
C. The Notice advised that written comments would be accepted for a period of 15
days from May 30 , 2019. No comments were received within the time set forth in the Notice.
BASED UPON the above findings and the findings in Administrative Order No. 53-19-
09, Construction Excise Tax Administrative Rule R-3.730 is adopted as set forth below.
R-3.730-A
PROPOSED CONSTRUCTION EXCISE TAX
ADMINISTRATIVE RULE R-3.730
Definitions. As used in this Rule, the following words and phrases mean:
Addition. An extension or increase in floor area, number of stories or height of a
building or structure.
Alteration. Any construction or renovation to an existing structure other than
repair or addition.
Building Official. A person designated by the city manager w~th the responsibility
for administration and enforcement of the regulations adopted under section 8.005
of the Eugene Code, 1971, or his/her designee.
City Manager. The city manager or the city manager's designee.
Administrative Order --Page 1 of 4
R-3.730-B
(1)
Commercial. Designed or intended to be used, or actually used, for other than
residential purposes.
Construct or construction. Erecting, constructing, enlarging, altering, repairing,
improving, or converting any building or structure for which the issuance of a
building permit is required by Oregon law.
Dwelling Unit. A single unit providing complete independent living facilities for
one or more persons, including permanent provisions for living, sleeping, eating,
cooking and sanitation.
Floor area. The area within the inside perimeter of the exterior walls of the
improvement, exclusive of vent shafts and interior courts. The floor area of an
improvement, or portion thereof, not provided with surrounding exterior walls shall
be the usable area under the horizontal projection of the roof or floor above.
Improvement. A permanent addition to, or modification of, real property resulting
in a new structure, additional square footage to an existing structure, or addition of
living space to an existing structure.
Living space. Space within a dwelling unit utilized for living, sleeping, eating,
cooking, bathing, washing and sanitation purposes.
Repair. The reconstruction, replacement, or renewal of any part of an existing
building for the purpose of its maintenance or to correct damage.
Residential. Designed or intended to be used, or actually used, for residential
purposes including any residential structure, dwelling, or dwelling unit.
Structure. Something constructed or built and having a fixed base on, or fixed to,
the ground or to another structure.
App Ii ca bility.
EC 3.372(1) requires that each person who applies to construct a commercial
improvement in the city pay a commercial ·construction excise tax in the following
amounts:
(a) From July 1, 2019 through June 30, 2020: 0.33 percent of the value of the
improvement.
(b) Beginning July 1, 2020: 0.50 percent of the value of the improvement.
(2) EC 3 .3 72(2) requires that each person who applies to construct a residential
improvement in the city pay a residential construction excise tax in the following
amounts:
Administrative Order --Page 2 of 4
(3)
(4)
R-3.730-C
(1)
(a) From July 1, 2019 through June 30, 2020: 0.33 percent of the value of the
improvement.
(b) Beginning July 1, 2020: 0.50 percent of the value of the improvement.
The construction excise tax is only applicable ~o the portion of an alteration that
results in additional living space.
EC 3.372(3) provides that the construction excise tax is due and payable prior to
the issuance of any building permit.
Determination of Value of Improvement.
The value of an improvement shall be determined by the Building Official in
accordance with Section 8.005 of the Eugene Code 1971, and OAR 918-050-0100
as follows:
(a) New structure or addition to an existing structure, Residential: The value
of a new residential structure or an addition to an existing residential
structure is determined using the International Code Council (ICC) Building
Valuation Data Table current as of April 1 each year.
(b) New structure or addition to an existing structure, Commercial:
1. Except as provided in subparagraph (2) of this paragraph (b ), the
value of a new commercial structure or an addition to an existing
commercial structure is the higher of:
a. The value of the new commercial structure or addition to an
existing commercial structure based on the ICC Building
Valuation Data Table current as of April 1 of each year,
using the occupancy and construction type as determined by
the building official; or
b. The value of the new commercial structure or addition to an
existing commercial structure as stated by the applicant.
2. In the case of a new, shell-only commercial structure, the value of
the structure shall be determined as provided in subparagraph (1 ),
except the value shall be determined based on the proposed first use
or occupancy type.
( c) Alteration to an existing residential or commercial structure resulting in
additional living space: The value of an alteration to an existing residential
Administrative Order --Page 3 of 4
or commercial structure that results in additional living space is the value of
all construction work for the alteration , as well as all finish work, painting,
roofing, electrical, plumbing, heating, air conditioning, elevators, and other
permanent work or equipment, and the contractor's profit.
Dated and effective this Z-t./-1'J.day of June, 2019.
Administrative Order --Page 4 of 4