Presentation on theme: "SB 1036: Construction Excise Tax"— Presentation transcript:
1 SB 1036: Construction Excise Tax David WilliamsOSBALegislative & Public Affairs Specialist
2 CET Overview New taxing authority for school districts Tax on new square footageMinimum ExemptionsDedicated to capital constructionLocally determined
3 CET Particulars Tax on new square footage Minimum Exemptions Maximum of $1/sq. ft. residentialMaximum of $.50/sq. ft. non-res. ($25,000 cap)Paid by person undertaking the construction at the time a permit is issuedMinimum ExemptionsPrivate Schools; Public Bldgs; HUD Affordable Housing; Hospitals; Churches; Agriculture Bldgs; non-profit senior care facilitiesAnnual Rate IncreasesIncreases in construction cost indexDetermined by Dept. of Revenue
4 Steps for Implementation Adopt long-term facilities planNo specific requirements in SB 1036Comply with SB 336 (2007) by 1/1/ (for SDs over 2,500 ADM)Adopt by board resolutionEnact construction excise taxEnter into IGA with local governmentsCities & CountiesBegin CollectionsInvolve your community!
5 Intergovernmental Agreement Sample IGA at OSBA.orgNegotiated with entity that will collect tax on behalf of the districtMust contain:Collection duties & responsibilitiesSchool District account to deposit funds & frequency of depositsAdministrative fee for local government; no more than 4%
6 Allowable Expenditures Capitol ImprovementsAcquisition of LandConstruction, reconstruction or improvement of school facilities; and related costsAcquisition or installation of equipment, furnishings or other tangible propertyPayment of obligations to finance or refinance capital improvementsDoes NOT include “operating costs” or “routine maintenance”
7 Status of Implementation (as of March 2009) 49 Districts have AdoptedBeaverton, Bethel, Culver, Canby, Cascade, Centennial, Central Point, Corvallis, Cove, Creswell, Culver, David Douglas, Fern Ridge, Forest Grove, Gaston, Gervais, Gladstone, Greater Albany, Gresham-Barlow, Hillsboro, Hood River County, Klamath County, Klamath Falls, Lincoln County, McKenzie, McMinnville, Molalla River, Neah-Kah-Nie, Newberg, North Clackamas, North Santiam, North Wasco County, Oakridge, Oregon City, Oregon Trail, Parkrose, Portland, Reynolds, Riverdale, Saint Helens, Sherwood, Silver Falls, Siuslaw, South Lane, Tigard-Tualatin, Tillamook, West Linn-Wilsonville, Woodburn, Yamhill-Carlton