Albany council adopts phased construction excise tax; low‑income rental exemption fails for lack of motion

The Albany City Council on Aug. 13 adopted an ordinance creating a housing construction excise tax and followed that with a resolution to phase in tax rates over three years, starting Jan. 1, 2026. A separate ordinance to adopt the state low‑income rental housing property tax exemption did not receive a motion at second reading and was not adopted.

Council members voted to establish the CET ordinance after a brief public comment period that included vocal opposition from local residents and the building industry. Heather Efremson, senior construction manager for Hayden Homes and vice president of the Western Oregon Builders Association, told the council, “We oppose the construction excise tax, and we oppose the low income rental housing property tax exemption.” She urged the council instead to approve a municipal option to defer systems development charges (SDCs), which she said “brings more flexibility to the market.”

City Attorney Anne (name as provided in the record) told the council the low‑income rental housing property tax exemption would be adopted under state law and clarified eligibility and retroactivity. “The low income rental housing tax exemption program ... doesn't require approval of other taxing jurisdictions. So the city could…