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Dallas SD 2 board approves 100% construction excise tax after debate on housing costs
Summary
After extended debate about whether a construction excise tax would raise builder costs and affect affordable housing and enrollment, the board voted 3–2 to set the CET rate at 100% for fiscal year 2025–26; members discussed earmarking and oversight of collected funds.
The Dallas School District 2 board voted 3–2 to set the construction excise tax (CET) rate at 100% for fiscal year 2025–26, approving Resolution No. 20 42511 after a lengthy discussion about potential uses of the funds and impacts on housing affordability.
Staff told the board the resolution sets proposed tiered CET rates and noted the index rates are published and used to determine the maximum. ‘‘I’ll move to adopt the maximum index tax rates as presented for construction excise tax beginning in fiscal year 20 five-twenty 6,’’ a board member said; another seconded the motion and the board considered whether to adopt the maximum (100%).
Members debated how the district has collected CET funds and not yet spent them, and about possible uses ranging from facilities repairs to turf and stadium upgrades. Several board members raised concerns that the CET increases construction costs and could discourage builders and first-time homebuyers. One board member said, "So this is a disincentive to for people to build in our community." Staff replied that the district follows Oregon Revised Statutes on allowable uses and that exemptions are determined at the city level; the district receives appeals only if the builder seeks district review.
The board approved the CET at 100% by roll-call-style voice vote: three members voted in favor and two opposed. Board members discussed using citizen oversight and a forthcoming long-range facilities planning committee to set priorities for any CET expenditures.
