HomeMy WebLinkAboutOrd. 20609
2060
520
AND
ADOPTED:
SIGNED:10
REJECTED:
OPPOSED:
ABSENT:
1
ORDINANCE NO. 20609
AN ORDINANCE CONCERNING IMPOSITION OF A CONSTRUCTION EXCISE
TAX ONCOMMERCIALAND RESIDENTIAL IMPROVEMENTSAND ADDING
SECTIONS 3.730, 3.732, 3.734, 3.736, 3.738, 3.740, 3.742, 3.744, 3.746 AND
3.748 TO THE EUGENE CODE, 1971.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.Sections3.730, 3.732, 3.734, 3.736, 3.738, 3.740, 3.742, 3.744, 3.746 and
3.748of the Eugene Code, 1971, are added to provide as follows:
Construction Excise Tax
3.730Construction Excise Tax - Definitions. The following words andphrases as used
in 3.732, 3.734, 3.736, 3.738, 3.740, 3.742, 3.744, 3.746 and3.748of this codeshall
have the following meanings:
Area median income.Lane County median household income by household size
as defined by the United States Department of Housing and Urban Development and
published periodically.
City Manager. The city manager or the city manager’s designee.
Commercial.Designed or intended to be used, or actually used, for other than
residential purposes.
Constructor 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.
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.
Net revenue.Revenues remaining after the administrative fees described in section
3.738of this code are deductedfrom the total construction excise tax collected.
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.
Value of improvement.The total value of the improvement as determined in the
process of issuance of the building permit.
3.732Construction Excise Tax – Tax Imposed.
Ordinance - Page 1 of 4
(1)Each person who applies to construct a commercial improvement in the city
shall 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)Each person who applies to construct a residential improvement in the city shall
pay a residential 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.
(3)The construction excise tax shall be due and payable prior to the issuance of
any building permit.
3.734Construction Excise Tax - Exemptions.
(1)The construction excise tax shall not apply to any of the following improvements:
(a) Private school improvements;
(b) Public improvements as defined in ORS 279A.010;
(c) 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 city of Eugene, for a period of at least
60 years following the date of construction of the residential housing;
(d) Public or private hospital improvements;
(e) Improvements to religious facilities primarily used for worship or education
associated with worship;
(f) Agricultural buildings, as defined inORS 455.315(2)(a);
(g) Facilities that are operated by a not-for-profit corporation and that are:
1. Long term care facilities, as defined in ORS 442.015;
2. Residential care facilities, as defined in ORS 443.400;or
3. Continuing care retirement communities, as defined in ORS
101.020.
(h) Residential dwellings sold for $250,000or less;
(i)Housing for low-income persons that is exempt from systems
development charges pursuant to section 7.725(c) of this code; and,
(j)Projects granted a multi-unitproperty tax exemption (MUPTE) by the city.
(2) Any person seeking an exemption may be requiredto demonstrate that the
improvements are eligible for an exemption and to establish all facts necessary
to support the exemption.
3.736Construction Excise Tax – Refunds.
(1)A construction excise tax may be refunded to a person that:
(a) Establishes thatthe tax was paid for improvements that were otherwise
eligible for an exemption under section 3.734of this code; or
(b) Establishes that construction of the improvements was not commenced
and the associated building permit has been cancelled by the city; or
(c) Establishesthat the tax had been erroneously collected.
(2)A request for a refundshall be made within three years from the date of payment
of the construction excise tax on forms provided by the city manager. Denial of
a request for a refund may be appealed as provided for in section 3.744of this
code.
3.738 Construction Excise Tax – Allocation.
Ordinance - Page 2 of 4
(1)Revenues from the construction excise tax will be allocated to fund programs,
incentives, and services related to the housing of households earning 100
percentof area medium income and below, and in accordance with state law.
(2)Upto 4 percentof the taxes collected may be retained by the city for payment
toward the city’s administrative expenses related to collection and distribution
of the construction excise tax.
3.740Construction Excise Tax – Interest and Penalties. In addition to assessing any
civil penalties, if the city manager determines that a person has failed to pay to the
city all or any part of the construction excise tax due under section 3.732of this code,
interest shall be due on the entire unpaid amount, assessed at the rate of .833 percent
simple interest per month or fraction thereof (10 percent per annum), computed from
the original due date of the tax.
3.742Construction Excise Tax – Implementing Rules. The city manager may adopt
administrative rules pursuant to section 2.019 of this code for implementation of
sections 3.732, 3.734, 3.736, 3.738, 3.740, 3.744, 3.746 and3.748of this code, the
billing and collection of the construction excise tax due thereunder,and enforcement
of those provisions.
3.744Construction Excise Tax – Appeal. Any person aggrieved by any decision under
this code may appeal the decision in the manner provided in section 2.021 of this
code. The appeal shall be heard and determined as provided in section 2.021 of this
code.
3.746Construction Excise Tax – Violations. No person required to pay a construction
excise tax under section 3.732of this code may fail to state or to misstate the full
value of the improvement.
3.748Construction Excise Tax – Program Review.Beginning in 2021, and every two
years thereafter, the city council shall review the overall management and outcomes
of the construction excise tax program.
Section 2. The System Development Charges (SDCs) of persons required to pay the
construction excise tax pursuant to Section 3.732will be calculated in accordance with City Code
and the City’s adopted SDC Methodology. However, for the period of July 1, 2019 through June
30, 2021, the amount of the construction excise tax the person paid pursuant to Section 3.732
will besubtracted from the total amount of City-imposedSDCs the person owes.The person will
owe the total City-imposed SDC amount remaining after the construction excise tax is subtracted.
Also, the person will owe in its entirety the Regional Wastewater SDC. If the amount of the
construction excise tax the person paidpursuant to Section 3.732exceedsthe total amount of
City-imposedSDCs owed, the excess construction excise taxpaidwill be subtracted from a permit
fee the person owes.
Ordinance - Page 3 of 4
Date: February 3, 2021
To: Beth Forrest, City Recorder
From: Lauren A. Sommers, Assistant City Attorney
Subject: Scrivener Error Correction to EC 3.734 and Section 5 of Ordinance No. 20609
It has come to our attention that reference errors exist in EC 3.734 and Section 5 of
Ordinance No. 20609.
Ordinance No. 20609, adopted on April 8, 2019, added Sections 3.730 through 3.748 to
the Eugene Code, 1971. The reference to “section 7.725(c)” in subsection (1)(i) of EC 3.734
should have been a reference to “section 7.725(2).” Please effect a scrivener error correction to
EC 3.734(1)(i) as shown in legislative format below, so that it reads as follows:
3.734 Construction Excise Tax - Exemptions.
(1) The construction excise tax shall not apply to any of the following
improvements:
*****
(i) Housing for low-income persons that is exempt from
systems development charges pursuant to section
7.725(c)(2) of this code; and,
*****
In addition, the reference to “Section 3.732” in uncodified Section 5 of Ordinance No. 20609
should be a reference to “Section 3.738.” Please effect a scrivener error correction to Section 5
as shown in legislative format below, so that it reads as follows:
Section 5.The City intends to convene a citizen advisory committee to
make recommendations regarding how construction excise tax revenues should
be allocated in accordance with Section 3.732 8.
These corrections are authorized by Section 6 of Ordinance No. 20609. Please attach a
copy of this memo to Ordinance No. 20609.