Hales Demolition Tax Vote Finally Set for Next Week
Saturday, November 28, 2015
It has been a long road to the vote for the tax. As GoLocal reported, the measure initially called for a $25,000 tax on any developer who tears down a home. It was then narrowed to tax only developers who replace one single-family home with another single unit.
The newest incarnation of Hales’ tax show similarities to the original measure. The latest version would enforce a $25,000 tax on all viable homes demolished and replaced with one or more new homes. Only homes being purchased by the city to restore flood plains and affordable housing replacement project would be exempt from the tax.
"Growth is creating a lot of positive things in Portland, but I'm less happy with the demolition of great old houses that are being replaced by more expensive ones," Hales said at a hearing regarding the tax on Wednesday.
The tax has seen staunch opposition since its introduction. Some at the hearing complained that the tax would only serve to make homes in Portland more expensive.
The Oregon Home Builders Association previously argued that the tax is illegal, while United Neighborhoods for Reform, a neighborhood coalition, wanted a higher tax. Others warned of unforeseen consequences and worried that the tax would lead to more infill development.
An amendment proposed by Commissioner Steve Novice that would have reduced the tax for demolitions that would be replaced by less expensive homes was rejected by the City Council. Hales indicated that the amendment may be revised as the tax begins to be enforced.
Related Slideshow: Charlie Hales’s Top 15 Donors
Portland's mayoral election is still over a year away, but that hasn't stopped incumbent mayor Charlie Hales from launching his campaign. Thus far, Hales has raised over $88,000 in donations from more than 60 donors, whose contributions have ranged from $100 to $5,000 each. Using state campaign finance records, GoLocalPDX compiled a list of Hale's 15 biggest donors, many of which are major power players in Portland's development industry.
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