Construction Excise Tax

The City of Umatilla has entered into an Intergovernmental Agreement with the Umatilla School District to collect and remit a Construction Excise Tax (CET) on their behalf.

The Oregon Legislature passed Senate Bill 1036 to help growing school districts, such as Umatilla, pay for a portion of the cost for new or expanded facilities needed to accommodate growth.

Senate Bill 1036 allows school districts, in cooperation with cities and counties, to tax new residential and non-residential construction. This excise tax option was created with bipartisan support by the Oregon Legislature. Agencies and groups supporting it include the Oregon Home Builders Association, the Oregon PTA and the Oregon School Boards Association.

The revenue generated from SB 1036 alone will not raise sufficient revenue to cover the cost of new or expanded schools; voter approved bonds are still necessary. However, every dollar collected from new construction may be one less dollar taxpayers will have to pay in a bond measure.

The rates of tax, imposed only on improvements to real property that result in a new structure or additional square footage in an existing structure, with the exemptions outlined in Senate Bill 1036, are:

$1.39 per square foot on structures or portion of structures intended for residential use, including, but not limited to, single unit or multiple unit housing: and
$0.69 per square foot on structures or portions of structures intended for nonresidential use, not including multiple unit housing of any kind.

In addition, a construction tax imposed on structures intended for nonresidential use will not exceed $34,600 per building permit or structure, whichever is less.

Please see the informational brochure and other documents below for more information on the CET.