Tigard-Tualatin School District - Excise Tax INTERGOVERNMENTAL AGREEMENT TO COLLECT AND REMIT
CONSTRUCTION EXCISE TAX BETWEEN THE TIGARD-TUALATIN
SCHOOL DISTRICT 23J AND THE CITY OF TIGARD
This Intergovernmental Agreement is effective on the last date of signature below,
and is by and between the Tigard-Tualatin School District School District, a school
district organized under the laws of the state of Oregon ORS 330.005 ("School District"),
and the City of Tigard, a political subdivision of the State of Oregon, collectively referred
to as "Parties."
WHEREAS, ORS 190.003 to 190.030 allows units of local government to enter
into agreements for performance of any or all functions and activities which such units
have authority to perform; and
WHEREAS, Chapter 829, Oregon Laws 2007 (Senate Bill 1036), authorizes
school districts, as defined in ORS 330.005, to impose construction excise taxes to fund
capital improvements to school facilities; and
WHEREAS, School District represents that it has prepared and adopted a long
term facilities plan for capital improvements, as required by SB 1036, and
WHEREAS, School District is contemplating imposing a construction excise tax
within the School District and desires to enter into an intergovernmental agreement with
City of Tigard to collect the tax prior to the adoption of a construction excise tax; and
NOW THEREFORE, the Parties hereto agree as follows:
1. Information and Forms. School District shall create and provide to City of Tigard: (i)
information, forms, and assistance explaining the School District Construction Excise
Tax ("CET"); (ii) information and forms for CET exemptions; and (iii) any other forms
or information necessary for implementation of the CET.
2. Staffing. City of Tigard shall provide sufficient staff to calculate and collect the
School District CET as prescribed in this agreement along with its collection of other
construction permit fees. School District shall provide sufficient staff to implement the
CET program.
3. Collection; Start date. City of Tigard agrees to assess and collect the CET on behalf of
School District for those properties within School District and within City of Tigard.
City of Tigard shall begin collecting the District CET on March 1, 2008 after the District
gives notice to the City of Tigard of the adoption of the CET, including a copy of
District's resolution imposing the tax, or the effective date of the CET stated in the
Resolution, whichever is later. City of Tigard shall collect the District CET until the CET
expires or this agreement is terminated by either the School District or City of Tigard
upon 60 days written notice. In the event the School District increases or otherwise
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modifies the tax, it shall send written notice to the City of Tigard of the increase or other
modification, including a copy of School District's resolution adopting the change. The
City of Tigard shall collect the tax at the new rate within fifteen (15)business days after
notice is received by the City of Tigard, or upon the effective date of the change stated in
the School District Resolution, whichever is later.
4. Exemi)tions. School District shall provide City of Tigard with all forms necessary for
CET exemptions, and any other forms or information necessary for implementation of the
CET. If a Person or entity asserts that it is exempt from the CET and files a School
District CET Exemption Form at the time the CET would otherwise be due, City of
Tigard will grant the exemption if it appears to be a valid claim of exemption under the
School District Resolution adopting the CET. It shall be School District's responsibility
to determine the validity of the exemption and to institute collection procedures to obtain
payment of the CET, as well as any other remedy School District may have under law, if
the Person was not entitled to the exemption. Statutory exemptions to the CET are
included in exhibit A to this agreement.
5. Remittance. Following the effective date of this Agreement, City of Tigard shall remit
the collected CET to School District on a quarterly basis, by the 30th of the month
following the quarter's end. The CET remittance and the CET Report shall be sent to the
School District, attention Bonnie Maplethorpe, at 6960 S.W. Sandburg Street, Tigard,
Oregon 97223. Remittance will be by electronic funds transfer to School District's Local
Government Investment Pool Account Number 4036 or other similar account as School
District will hereafter designate.
6. CET Rei)orts. City of Tigard of Tigard shall prepare and submit to the School District
a report of the CETs collected and building permits issued by the City of Tigard for the
previous quarter's construction activities within the School District boundaries. The
report shall include: the number of building permits issued that month; the aggregate
square footage of residential construction; the aggregate square footage of non-residential
construction; the number of building permits for which CET exemptions were given; the
aggregate square footage of construction for the exempted construction; the aggregate
amount of CET paid; and the amount of CET administrative fee retained by City of
Tigard pursuant to this Agreement.
7. Failure to Pay CET. Construction Excise Taxes shall be paid by the person
undertaking construction at the time that a permit authorizing the construction is issued.
Upon a person's refusal to or failure to pay the CET when due, the City of Tigard will not
issue the building permit. In no event shall the City of Tigard be liable for failure to
collect CET when due.
8. Records. City of Tigard shall make all records related to building permit activity, CET
collections, and CET exemptions available to School District, or its designated auditors,
as necessary for School District to audit Construction Excise Tax collections.
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Tigard-Tualatin School District
9. Administrative Fee; Reimbursement of Additional Expenses.
a. As consideration for the above described services, City of Tigard shall
retain the full I% of the CET collected by City of Tigard as authorized by Section 5 of
Senate Bill 1036. Prior to remitting the CET to School District, City of Tigard shall
deduct this administrative fee directly from the CET collected, and the amounts deducted
and retained shall be identified on the report submitted to School District. City of Tigard
shall establish a fund or account for School District CET revenue, and shall deposit all
revenues collected, minus the administrative fee, into such fund or account.
b. If the administrative fee does not cover the City of Tigard's actual cost of
administering the CET, the City of Tigard may seek reimbursement from the School
District for the difference between the City of Tigard's actual cost of administering the
CET and the amount it has retained as the administrative fee. If the City of Tigard
desires to be reimbursed for its actual cost, the City of Tigard shall submit a quarterly
invoice requesting reimbursement of administrative expenses for the preceding three
month period. The invoice shall itemize the City of Tigard's actual costs of administering
the tax and the amount of the administrative fee it has retained for the same period. For
the purposes of this section, "actual costs" are costs that are directly attributable to the
collection and remittance of the CET, including staff time, cost of materials, and
transaction fees assessed against the City of Tigard for accepting CET payment by credit
card or other electronic means. The City of Tigard shall permit the School District access
to any and all City of Tigard records in order to verify the City of Tigard's invoice.
Except.in the case of a good faith dispute, the District shall pay to the City of Tigard the
difference between the City of Tigard's itemized actual cost of administering the tax and
the amount the City of Tigard has retained as the administrative fee within Thirty(30)
days of receipt of the City of Tigard's invoice.
10. Amendment. This Agreement may be amended by mutual written agreement of the
Parties.
11. Other Agreements. This Agreement does not affect or alter any other agreements
between School District and City of Tigard.
12. Defense and Indemnification. Subject to the limits of the Oregon Tort Claims Act,
School District agrees to defend, indemnify and hold harmless the City of Tigard, its
officers, agents and employees, against all claims and actions, and all damages and
expenses related thereto, arising from the performance of this agreement, or relating to
the subject of this agreement, except for those caused by the sole negligence of the City
of Tigard or its officers and employees. The obligations of this paragraph shall include,
but not be limited to:
a. challenge to the City of Tigard's collection or calculation of the CET on behalf
of the School District;
b. for any and all injury to any and all persons or property caused directly or
indirectly by reason of any and all acts or omissions of the School District in the
performance of this Agreement or adoption of the CET; or
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Tigard-Tualatin School District
c. decisions of City of Tigard staff concerning the amount of any CET, including
calculation of such tax and/or any exemption(s); or
d. refusal or denial of any permit for failure to pay the School District CET.
13. School District and City of Tigard Contact Persons. School District and City of
Tigard hereby designate the following persons as the individuals having primary
responsibility for administration of this Agreement, and as the person designated to
receive notice provided for herein. Either party may change its designated contact person
by written notice to the other party.
Tigard-Tualatin School District 23J City of Tigard
Name: Bonnie Maplethorpe Name: Brian Blalock
Title: Chief Financial Officer Title: Building Official
Address: 6960 SW Sandburg St. Address: 13125 SW Hall Blvd
Tigard, OR 97223 Tigard, OR 97223
Telephone: 503.431.4016 Telephone: 503.718.2448
Email: Email:
bmaplethorpe@ttsd.kl2.or.us brianb@tigard-or.gov
14. Notice. Whenever notice is required to be given under this Agreement, the notice
shall be given in writing to the other party's contact person by US Mail, first class
postage prepaid. In addition, notice may be given by email or personal delivery.
15. General Provisions. This Agreement is binding on and insures to the benefit of the
parties and their successors and assigns. Except with the other party's prior written
consent, a party may not assign any rights or delegate any duties under this Agreement.
The headings used in this Agreement are solely for convenience of reference, are not part
of this Agreement, and are not to be considered in construing or interpreting this
Agreement. This Agreement sets forth the entire understanding of the parties with
respect to the subject matter of this Agreement and supersedes any and all prior
understandings and agreements, whether written or oral, between the parties with respect
to such subject matter. A provision of this Agreement may be waived only by a written
instrument executed by the party waiving compliance. No waiver of any provision of this
Agreement shall constitute a waiver of any other provision, whether or not similar, nor
shall any waiver constitute a continuing waiver. Failure to enforce any provision of this
Agreement shall not operate as a waiver of such provision or any other provision. From
time to time, each of the parties shall execute, acknowledge, and deliver any instruments
or documents necessary to carry out the purposes of this Agreement. Time is of the
essence for each and every provision of this Agreement. Nothing in this Agreement,
express or implied, is intended to confer on any person, other than the parties to this
Agreement, any right or remedy of any nature whatsoever. Each party shall bear its own
expenses in connection with this Agreement and the transactions contemplated by this
Agreement. This Agreement shall become effective upon the approval of School
District's Board of Directors and the City of Tigard Council.
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Tigard-Tualatin School District
Tigard-Tualatin School District 23J City o Ti and
By: By: Crai ro s,
Title: Superintendent Title: City Manager
Date: /r,"I 16 Date:
i
By:
Title: Boardairman
e
Date: i 1 ")5
")g
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Tigard-Tualatin School District
EXHIBIT A
EXEMPTIONS
The following improvements are exempt from the Construction excise tax by statute:
1. Private School Improvements
2. Public Improvements as defined in ORS 279A.010
3. Residential housing that is guaranteed to be affordable, under guidelines
established by the United States Department of Housing and Urban Development,
to households that earn no more that 80% of the median household income for the
area in which the construction tax is imposed, for a period of at least 60 years
following the date of construction of the residential housing.
4. Public or Private hospital improvements
5. Improvements to religious facilities primarily used for worship or education
associated with worship.
6. Agricultural buildings as defined in ORS 455.315 (2)(a)
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Tigard-Tualatin School District