91视频

Portland Mayor Charlie Hales‘ proposed tax on 鈥渙ne-for-one鈥� residential demolitions was tossed around at last week’s City Council meeting and then returned for revisions following criticism from stakeholders 鈥� including homebuilding advocates who called the one-of-a-kind plan 鈥渟illy鈥� and illegal.

The proposed tax is part of a larger push by the mayor to address long-standing issues including homelessness and rising rents.

Hales proposes charging $25,000 to owners who deconstruct 鈥渉abitable鈥� homes in residential neighborhoods. He wants to reduce demolitions where one home is replaced with another, particularly in zones R 2.5 to R 20. The policy would help preserve affordable housing and the character of Portland’s neighborhoods, Hales told the 91视频.

On Wednesday, the plan drew fire from homebuilders, neighborhood groups and housing economist Jerry Johnson. United Neighborhoods for Reform suggested that the tax amount was not high enough. Johnson said the tax could carry the unintended consequence of discouraging middle-income owners from developing their property, while leaving the rich unaffected.

The Home Builders Association of Metro Portland and the Oregon Home Builders Association contend that the city lacks legal authority to establish the tax, citing a state statute banning cities from imposing excise taxes on construction activity (ORS 320.170).

鈥淐ities do not have the ability to invent taxes out of whole cloth; statutory or other authority must exist,鈥� OHBA CEO Jon Chandler wrote in a letter to the Portland City Council. 鈥淚n this case, neither state law nor the city’s own code provide that authority, so this proposed tax is inherently invalid.鈥�

Chandler told the 91视频 the mayor’s plan was 鈥済randstanding鈥� and a 鈥渃heap political stunt.鈥�

鈥淚t’s just wrongheaded, period,鈥� he said. 鈥淚 hope it goes away. It’s a silly idea.鈥�

A spokeswoman for Hales said the policy is being revised and will next go before City Council next month.