West Linn Planning Commission debates construction excise tax concerns and housing affordability

The West Linn City Council's special meeting on February 18, 2025, spotlighted the contentious discussion surrounding the proposed Construction Excise Tax (CET), which could generate approximately $400,000 in revenue based on current construction activity. The council and planning commissioners grappled with the implications of this tax, particularly its potential impact on housing affordability in the city.

Planning Commissioner Tom Wotton voiced significant concerns, stating that the CET could burden homebuyers in an already tight market. He emphasized that developers are operating on slim margins, and passing additional costs onto buyers could stifle growth and affordability. Wotton noted that while cities like Bend and Corvallis thrive with such taxes, West Linn's unique market conditions might not yield similar benefits.

Councilor Bridal added to the discussion by highlighting that neighboring communities like Lake Oswego and Oregon City do not impose a CET, which could make West Linn less attractive to developers. This sentiment was echoed by other council members who expressed the need for a balanced approach that would not deter development.

Jason, another council member, urged the council to consider coupling the CET with reductions in System Development Charges (SDCs) to avoid merely increasing fees without addressing housing costs. He argued that a comprehensive strategy is essential to promote affordable housing effectively.

The meeting revealed a split among council members and planning commissioners, with some advocating for the CET as a necessary tool for funding housing initiatives, while others cautioned against its potential negative consequences. As discussions continue, the council faces the challenge of finding a solution that supports housing development without alienating builders and buyers alike. The outcome of this debate could significantly shape West Linn's housing landscape in the coming years.