Beaverton School District - Collect Excise Tax INTERGOVERNMENTAL AGREEMENT TO COLLECT AND REMIT
CONSTRUCTION EXCISE TAX BETWEEN THE BEAVERTON SCHOOL
DISTRICT 48J AND THE CITY OF TIGARD
This Intergovernmental Agreement is effective on the last date of signature below,
and is by and between the Beaverton 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. Staffinz. 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
modifies the tax, it shall send written notice to the City of Tigard of the increase or other
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Beaverton School District
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. Exemptions. 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 Janice Essenberg, at 16550 SW Merlo Rd., Beaverton, Oregon
97006. Remittance will be by electronic funds transfer to School District CET Account at
US Bank or other similar account as School District will hereafter designate
6. CET Reports. 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.
In no event shall the City of Tigard be liable for failure to collect CET when due. In the
event a person fails to pay the CET when due, the City of Tigard shall notify School
District in writing within five (5) business days of discovery of such failure to pay, with
information adequate for School District to begin collection procedures against that
Person, including the Person's name, address, phone numbers, construction project,
square footage of new construction, and building permit number. Upon a Person's
refusal or failure to pay the CET, it shall be School District's responsibility to institute
collection procedures to obtain payment of the CET as well as any other remedy School
District may have under law.
Page 2 of 6—CET!GA City of Tigard
Beaverton School District
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.
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 Aszreements. 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:
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Beaverton School District
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
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 Citv 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.
Beaverton School District City of Tigard
Name: Janice Essenberg Name: Brian Blalock
Title: Chief Financial Officer Title: Building Official
Address: 16550 SW Merlo Road Address: 13125 SW Hall Blvd
Beaverton, OR 97006 Tigard, OR 97223
Telephone: 503.591.4262 Telephone: 503.718.2448
Email: Email:
janice_essenberg@beaverton.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
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Beaverton School District
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.
Beaverton School District 48J City of T and
",jBy: Jerome Colonna By: C ig Prosser
Title: Superintendent Title: City Manager
Date: Date:
Page 5 of 6—CET IGA City of Tigard
Beaverton 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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Beaverton School District
RESOLUTION NO. 08-15
A RESOLUTION OF BEAVERTON SCHOOL DISTRICT NO. 48,
WASHINGTON AND MULTNOMAH COUNTIES, OREGON, ENACTING A
CONSTRUCTION EXCISE TAX AS AUTHORIZED BY OREGON LAWS 2007
CHAPTER 829; AND, AUTHORIZING INTERGOVERNMENTAL AGREEMENTS
WITH THE CITY OF HILLSBORO AND THE CITY OF TIGARD TO IMPOSE AND
COLLECT SAID TAX.
WHEREAS, the Beaverton School District No. 48 is authorized and responsible for the
locating, construction, operation and maintenance of public school capital improvements within
its jurisdiction; and
WHEREAS, the Beaverton School District No. 48 is a school district as defined in ORS
330.005 which has a long-term facilities plan for making capital improvements adopted by
resolution of the district board of the school district; and
WHEREAS, the Board of Directors of the Beaverton School District No. 48 having
considered and deliberated at a public meeting the public interest and necessity of imposing a
construction excise tax to finance protecting and preserving its existing capital improvements
and for the construction of new capital improvements to serve a growing population within its
jurisdiction, and to finance or refinance the same; and
WHEREAS, pursuant to Oregon Laws 2007 Chapter 829 the Board of Directors of the
Beaverton School District No. 48 has determined that there is a compelling public need to
finance or refinance said capital improvements; now, therefore:
NOW THEREFORE,the Board of Directors of the Beaverton School District No. 48, in
Washington and Multnomah Counties, Oregon, resolves as follows:
SECTION 1.
(1) The Beaverton School District No. 48 enacts a construction excise tax to be
imposed only on improvements to real property that result in a new structure or additional square
footage in an existing structure at a rate of:
(a) One dollar ($1.00) per square foot on structures or portions of
structures intended for residential use, including but not limited to single-unit or multiple-unit
housing; and
(b) Fifty cents ($0.50) per square foot on structures or portions of
structures intended for nonresidential use, not including multiple-unit housing of any kind.
Resolution No. 08-15
Page 1 of 3
•"
(2) In addition to the limitations under subsection (1) of this section, a
construction tax imposed on structures intended for nonresidential use may not exceed $25,000
per building permit or$25,000 per structure, whichever is less.
(3) (a) For years beginning on or after June 30, 2009, the limitations under
subsections (1) and (2) of this section shall be adjusted for changes in construction costs by
multiplying the limitations set forth in subsections (1) and (2) of this section by the ratio of the
averaged monthly construction cost index for the 12-month period ending June 30 of the
preceding calendar year over the averaged monthly construction cost index for the 12-month
period ending June 30, 2008.
(b) The adjusted limitations under this section and shall be pursuant to
the report of the construction cost index published by the Oregon Department of Revenue. As
used in this section, the "construction cost index" means the Engineering News-Record
Construction Cost Index, or a similar nationally recognized index of construction costs as
identified by the department by rule.
(4) Construction taxes shall be paid by the person undertaking the construction at
the time that a permit authorizing the construction is issued.
SECTION 2. The construction taxes shall not be imposed on the following:
(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 than 80 percent 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).
SECTION 3. This Resolution takes effect on February 5, 2008.
Resolution No. 08-15
Page 2 of 3
ADOPTED by the Board of Directors of Beaverton School District No. 48, Washington and
Multnomah Counties, Oregon this fourth day of February, 2008.
BEAVERTON SCHOOL DISTRICT NO. 48
WASHINGTON AND MULTNOMAH
COUNTIES, OREGON
i
By: ��',
Chair, Board of Directors
ATTEST:
By:
/Srlmt�endent/District Clerk
Resolution No. 08-15
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