15.17.035 Exemptions.
A. The construction excise tax shall not apply to any of the following improvements, which are exempt:
1. Replacement residential structure with no net increase in living space.
2. Non-living space located on residential property (e.g. shop buildings, garages).
3. Accessory dwelling units, accessory farm dwellings, seasonal farm worker housing, and temporary hardship dwellings, as defined in applicable state law or City land use regulations.
4. Residential housing subject to deed restrictions requiring the property to remain affordable to households at or below 80% area median income for a period of at least 50 years following the date of the restriction.
5. Private school, public or private hospital improvements.
6. Public improvements as defined in ORS 279A.010.
7. Improvements to religious facilities primarily used for worship or education associated with worship.
8. Facilities operated by a not-for-profit corporation that are:
I. Long-term care facilities, as defined in ORS 442.015; or
II. Residential care facilities, as defined in ORS 443.400; or
III. Continuing care retirement communities, as defined in ORS 101.020.
9. Any improvements that are exempt from the construction excise tax under state law.
B. Partial exemption of 50% shall apply to residential housing that is subject to a deed restriction requiring that the property remain affordable to households that earn between 81% and 120% of the area median income for a period of at least 50-years following the date of the restriction.
C. Any person seeking exemption shall provide information and documentation to the City sufficient to establish that the requested exemption is applicable and appropriate. The Building Department shall make the determination of eligibility for any exemption under this Chapter at the time of issuance of building permits as part of calculating the amount of excise tax due, based on the documentation provided by the permit applicant.
D. In the event that a property receiving a full or partial exemption under this section as affordable housing is subsequently sold for an amount that no longer qualifies as affordable housing, the seller shall be liable for all of the following:
1. an amount equal to the applicable construction excise tax as of the time of the construction;
2. interest on the tax at an annual rate of 12% from the date of the exemption; and
3. a late fee equal to 5% of total applicable taxes and interest owing under this section.