Construction Excise Tax

Several cities have passed local construction excise taxes, a fee or tax assessed on construction at the time building permits are issued. The fee is often charged based on square footage, or on a percent of the total valuation. The revenue from these fees are used for a variety of purposes, including affordable housing, street maintenance, planning, and public safety. With the passage of SB 1036 in 2007, cities that had not enacted an excise tax before May 1, 2007, are preempted from passing this type of fee.

SB 1036 also authorized school districts to implement construction excise taxes.  

Sample City/School Intergovernmental Agreement