ORDINANCE NO. 181479

*Authorize an Intergovernmental Agreement with School Districts to collect and remit a Construction Excise Tax (Ordinance)

The City of Portland Ordains:

Section 1. The Council finds:

1.  On September 27, 2007, the 2007 Legislature passed Senate Bill 1036, which authorizes School Districts, as defined in ORS 330.005, to impose construction excise taxes (CET) to fund capital improvements to school facilities.

2.  Sections 2 and 5 of Senate Bill 1036 provide that the CET imposed by a School District may be collected and remitted pursuant to a written intergovernmental agreement with each local government, local service district or special government body.

3.  Section 5 also requires School Districts prior to imposing the CET to enter into an intergovernmental agreement with each local government, local service district or special government body. In addition, Section 6 of Senate Bill 1036 requires School Districts to develop and adopt a long-term facilities plan for making capital improvements prior to imposing the CET.

4.  The Bureau of Development Services (BDS) has been delegated responsibility by the State of Oregon for administering and enforcing the building inspection program in Portland City and Permit Service Area, and thus will be responsible for collecting the CET and remitting it to School Districts.

5.  BDS is proposing to sign intergovernmental agreements (IGA) with School Districts in order to establish certain procedures needed to collect and remit the CET.

6.  At request of School Districts, if a person refuses or fails to pay the CET when due, BDS will not issue the building permit.

7.  Because each school district within BDS’s service area is able to choose the date that they begin collecting the CET, each IGA with each School District may have a different effective date.

NOW, THEREFORE, the Council directs:

a.  BDS is hereby authorized to enter into intergovernmental agreements with the following 11 School Districts: Beaverton School District, Centennial School District, Corbett School District, David Douglas School District, Gresham-Barlow School District, North Clackamas School District, Parkrose School District, Portland Public School District, Reynolds School District, Riverdale School District, Scappoose School District in a form substantially in accordance with the agreement attached as Exhibit A, and to make any amendments to that agreement as may become necessary.

Section 2. The Council declares that an emergency exists because several School Districts will begin collecting the CET on January 1, 2008; therefore, this ordinance shall be in full force and effect from and after its passage by Council.

Passed by Council, December 12, 2007    Gary Blackmer

             Auditor of the City of Portland

Commissioner Randy Leonard        By /S/Susan Parsons

Denise Kleim, BDS

December 12, 2007                Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1473-2007

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 181479