Affordable Housing Construction Excise Tax
AFFORDABLE HOUSING CONSTRUCTION EXCISE TAX EFFECTIVE AUGUST 1, 2018
Purpose: To establish a construction excise tax of one-third of one percent on the value of residential, commercial, and industrial improvements to provide funding for affordable housing in the City of Medford. (Medford Municipal Code 9.280 – 9.295)
Exemptions include such uses as private school improvements; public or private hospital improvements; and some not-for profit corporations: long term care facilities, residential care facilities, and continuing care retirement communities. A full list of exemptions can be found in Medford Municipal Code 9.284.
Sample tax impact on the cost of a permit:
– Median valued single family home: value of improvement $272,000 x .0033 = $900
– Commercial development: value of improvement $10,000,000 x .0033 = $33,000
* not to exceed $50,000 per building permit or $50,000 per
structure, whichever is less.