HR City Council Approves Construction Excise Tax For Affordable Housing

Hood River City Councilors approved a one percent construction excise tax similar to one approved by Hood River County one month ago.  The Oregon Legislature passed a bill in 2016 that authorizes local governments to impose the tax to help support affordable housing.  City Manager Steve Wheeler says the City ordinance has a different definition of affordable housing than the County adopted, with the City using a definition of housing affordable for those with 80 percent or less of median income rather than the County’s 120 percent.  Annual estimated revenue from the construction excise tax in the City is $165,000, with about two-thirds of that to come from residential construction and the remainder from commercial and industrial developments.

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