Excise Tax Information

School District Construction Excise Tax

The 2007 Oregon Legislature passed SB 1036, a law that provides a financial tool to help school districts pay for capital improvements, expanded facilities, and equipment needed as a result of community growth. The law authorizes a school district, in cooperation with cities and counties, to tax new residential and non-residential development. Specifically, the tax applies to improvements to real property that result in a new structure or additional square footage to an existing structure. This most often occurs when someone removes a manufactured home and replaces it with a larger stick-bulit home. The excise revenue allows districts to purchase and prepare sites for future school facilities with the anticipation that new homes will bring more students.  The decision to impose a CET rests solely with the school district. 

The Construction Excise Tax rates for the 2025-26 school year are as follows:

Residential: $1.67
Non-Residential: $.84, with a maximum per building permit of $41,800

Marion County Excise Tax Info & Forms

CET Calculation Form

CET Exemption Application Form

School Construction Tax Limits

CET Explanation Form