Oregon legislators propose impact fee for vacant second homes to boost affordable housing

The Senate Committee on Finance and Revenue convened on April 16, 2025, to discuss a proposed bill aimed at addressing the impact of second homes on local housing markets in Oregon. The meeting focused on the challenges posed by the increasing number of second homes, particularly in amenity-rich communities, and the need for local governments to assess the associated impacts.

The primary agenda item was the introduction of a bill originating from the Sisters City Council. The bill seeks to allow local governments to impose impact fees on second homes that remain vacant for more than 180 days a year. Proponents argue that these fees would ensure that second homeowners contribute fairly to the local community, particularly in terms of housing availability for working families.

Senator Jeremy, a key advocate for the bill, emphasized that while second homes are not inherently problematic, their proliferation can detract from the housing stock needed for local residents. He clarified that the proposed fees would not be a general tax but rather a targeted approach to address specific impacts, such as increased demand on local services and infrastructure.

During the discussion, committee members raised questions about the parameters for determining the fee structure. Senator Taylor inquired whether the fees would be based on a percentage of the home’s value or a flat rate. Senator Jeremy responded that the fee should be tailored to the unique impacts of second homes in different communities, allowing local governments the flexibility to assess their specific needs.

Concerns were also voiced regarding the actual costs incurred by local governments due to vacant homes. Senator Starr questioned the rationale behind imposing fees on homes that do not appear to burden local services. In response, Senator Jeremy highlighted the broader implications of housing scarcity, noting that vacant homes can exacerbate issues related to public safety and community cohesion.

The committee acknowledged the complexities surrounding the issue, including the need for local governments to justify the imposition of such fees. It was noted that the bill would provide a tool for municipalities to address the housing crisis, particularly in areas where the demand for affordable housing is high.

As the meeting concluded, the committee expressed a commitment to further explore the implications of the proposed legislation and its potential to support local housing initiatives. The discussion underscored the ongoing challenges faced by communities in balancing the interests of second homeowners with the needs of local residents. Further deliberations are expected as the bill progresses through the legislative process.