Corvallis School Board takes testimony on excise tax
September 16, 2008 04:48 PM
On Monday, September 22, at 6:30 pm at the 509J Central Office (1555 SW 35 Street), the Corvallis School Board will hold a special meeting to discuss the proposed excise tax that would help pay for future improvements and expansions of district facilities. This session will include public testimony when community members will be invited to give input on any aspect of the excise tax.
In 2007, Oregon legislators passed a law (Senate Bill 1036) that will help Oregon school districts pay for a portion of the cost of new or expanded school facilities. The bill allows school boards, in cooperation with cities and counties, to tax new residential and non-residential development.
District officials estimate that in Corvallis the tax would gather on the average about $400,000 per year over the next ten years, and would pay for needed capital improvements. The facilities bond passed by voters in 2002 addressed the highest priority facility needs in the district. Over time additional facilities and equipment will reach their useful lifespan, and the excise would create an ongoing source of revenue to help address these needs.
The excise tax would be assessed at $1 per square foot on residential construction and $0.50 per square foot for non-residential construction, not to exceed $25,000 per building permit or $25,000 per structure, whichever is less. The tax only applies to new square footage. For home remodeling projects, only additional square footage would be taxed.
By law the excise tax could be used for capital improvements, including projects to provide a safe and comfortable learning environment (for example, heating and ventilation system upgrades and new roofs); projects that would educationally enhance current facilities (for example, installation of computer labs and purchase and installation of Smart Boards in classrooms); fees for architectural and engineering consultants; and purchase of land. At the work session, the School Board will be discussing priorities for how the excise tax would be used in Corvallis.
The tax would apply to construction permits on property located within Corvallis School District’s jurisdiction. Exemptions required by state law include private school improvements; public improvements; certain residential housing that is guaranteed to be affordable under guidelines established by the U.S. Department of Housing and Urban Development; public or private hospital improvements; improvements to certain religious facilities; and agricultural buildings as defined by state law. The school board may consider other exemptions.
Implementing the tax requires several steps. First, the district must adopt a long-term facilities plan. The second step is for the district to enter into intergovernmental agreements with the local governments for the collection of these funds. Lastly, the school board must pass a resolution to initiate the tax.
