Portland, Ore., City Council approves construction excise tax for affordable housing

The Portland, Ore., City Council approved a 1% construction excise tax. The tax is expected to raise $8 million a year to fund affordable housing initiatives.

Both residential and commercial projects are subject to the tax. The Oregon Legislature repealed a 17-year-old ban on inclusionary housing rules earlier this year. State lawmakers authorized cities and counties to enact construction excise tax programs for affordable housing.