Cascade board approves modest construction excise tax increase

The Cascade School District Board of Directors voted Jan. 12 to increase the construction excise tax (CET) rates, approving a residential rate of $1.70 per square foot and a nonresidential rate of $0.85 per square foot, with a nonresidential maximum of $42,400. The board approved the change by voice vote after brief discussion.

Board members asked for context and the district’s finance staff said the recommendation comes from the Oregon Department of Education as part of a multi-year schedule to keep rates aligned with prior guidance. Finance Director Wong noted the residential rate would rise from 1.67 to 1.70 per square foot — “so we want to take it up 3¢,” and he confirmed that represents approximately a 1.88% increase from the prior rate. The board adopted the resolution to implement the new rates effective July 1, 2026.

The board’s discussion emphasized providing municipalities and permitting authorities time to update forms and systems; staff said January or February approvals enable downstream jurisdictions to implement the change before the July effective date. No roll-call vote or individual tallies were recorded in the public minutes; the motion carried by voice vote.