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Council adopts 15% school support fee for extended enterprise‑zone exemptions
Summary
Council approved a 15% school support fee for years four and five of extended enterprise‑zone property tax exemptions. The fee (recommended by affected school districts) will be administered by the school districts; several operational questions about collection remain unresolved.
City staff presented a resolution for the council to adopt a 15% school support fee that applies to extended (four‑ and five‑year) Enterprise Zone property tax exemptions. The resolution implements a state rule requiring a school support fee if the city wants to continue offering the extended (4‑ or 5‑year) exemptions beyond the standard 3‑year exemption period.
According to staff, the school support fee is paid by the business applicant and remitted to the applicable school district; the city’s packet noted both the Eugene 4J and Springfield school districts participated in recommending the 15% rate. "The school support fee is required if we would like to continue to offer a 4 and a 5 year exemption," staff said. The fee is calculated as 15% of the taxes exempted in years four and five.
Councilors asked how administration and collection would work. Staff said the school district will administer and collect the fee under the administrative rule, and that some procedural details — such as notification and timing — remain to be worked out because the fee is applied after the qualifying investment is completed and assessed. Staff emphasized the fee applies only to new extended exemption applicants going forward.
Action: Councilor Michelle moved to adopt Resolution No. 2 establishing the school support fee at 15%; the motion passed 5–0 with Councilor Stout absent. Staff recorded remaining operational questions for follow‑up with the school districts.
