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Building, Planning and Land Use
Construction Excise Tax

What is Construction Excise Tax? 

An intergovernmental agreement with the Dayton School District for collection
and remission of a tax on all qualifying building permits when creating new livable space.
•The City will collect the tax on qualifying permits.
•Residential construction is assessed at $1.11 per/square foot for new construction or improvements that increases total square footage.
•By statute, the construction excise tax for residential construction in not limited.
•Non-residential construction is assessed at $ .55 per/square foot up to a maximum of $29,200.00.
•The tax will be collected when the building permit is issued.


The Following Exemptions apply:


•Private School improvements
•Public improvements as defined in ORS 279A.010.
•Residential housing that is guaranteed to be affordable, under guidelines established by the United States Department of Housing and Urban Development, to the households that earn no more than 80% 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.
•Public or private hospital improvements.
•Improvements to religious facilities primarily used for worship or education associated with worship.
•Agricultural buildings as defined in ORS 455.315 (2)(a).

** Please Note: It is the applicants responsibility to prove that the construction meets the requirements for exemption form the construction excise tax.

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