Medford City Council considers tax to fund affordable housing

Medford, Ore. — Medford City Council will be deciding whether or not it wants to impose a tax to help fund affordable housing projects. Council is considering a ‘construction excise tax’ that would essentially charge 1/3 of 1% of value for new construction or adding capacity to an existing structure.

For example, a $10,000 project would be taxed $33. Council was first introduced to the idea last month. A similar tax is successfully being used in Bend. The money collected by the tax would fund new affordable housing, something council said the city does not have enough of.

“If we give incentive – maybe pay down assistive development charges or work with permitting fees or things like that, then we can help develop more housing of those types,” said Kevin Stine, Medford City Councilor.

The public to invited to give testimony at the council meeting Thursday at 6 p.m. in council chambers. Council may make a decision, or decide to discuss it further.

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