City of Portland demolition tax will not move forward



City of Portland demolition tax will not move forward

The Alliance testified on a proposal by Mayor Charlie Hales to create a demolition tax for residential structures, raising concerns that the new tax may put increased pressure on housing affordability in the city.
Earlier this fall, the Alliance testified on a proposal by Mayor Charlie Hales to create a demolition tax for residential structures, raising concerns that the new tax may put increased pressure on housing affordability in the city. At a minimum, the Alliance urged that any such proposal be restricted to one-to-one conversions (single family-to-single family) in order to avoid a disincentive to develop multi-family housing, which would run counter to the city’s density and affordability goals. Following that hearing, Mayor Hales reworked the proposal to remove the rebate for demolitions that increase density.  City Council members continued to raise additional concerns and, when it became clear a majority of City Council members would not support the proposal, it was withdrawn by the mayor.