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Tigard‑Tualatin board adopts new construction excise tax rates effective July 1
Summary
The board voted to increase the district's construction excise tax limits to $1.67 per sq. ft. for residential and $0.84 per sq. ft. for nonresidential structures, with a $41,800 cap per permit; the change takes effect July 1 pending municipal notification.
The Tigard‑Tualatin School Board voted during its meeting to adopt a resolution raising the district’s construction excise tax (CET) limits for 2025–26. The district’s memo to the board proposed new maximum rates of $1.67 per square foot for residential structures and $0.84 per square foot for nonresidential structures, with a maximum tax of $41,800 per building permit.
The resolution (identified in meeting materials as Resolution 24‑25‑13) was moved by Director Zerschmid, seconded by Vice Chair Heineys, and approved by voice vote with no recorded opposition. Staff said that, if the board’s action stands, the district will notify six supporting municipalities and the new rate will take effect July 1.
Why it matters: construction excise taxes are a locally authorized source of funding for facility improvements; changing the CET rate affects new construction costs and the revenue available to the district for capital projects. The board packet included the proposed rate schedule and instructions on informing municipal partners.
What happened at the meeting: after a short presentation on the history and allowable limits for the CET, a motion to adopt the proposed rates was made and seconded. The chair called for a voice vote; members responded "aye" and the motion carried.
Ending: the CET adjustment is administrative and financial, not a direct classroom staffing decision. The district said it will inform municipal partners and implement the new rates on July 1 as described in the board memo.
