Beginning January 1, 2026, the City of Albany will implement a new Housing Construction Excise Tax (CET) to generate revenue to support affordable and needed housing throughout the community. This initiative is part of the City Council’s ongoing commitment to advancing the Housing Implementation Plan, which has guided policy decisions over the past two years.
The Housing CET is a one-time fee applied to building permits for new development that adds livable residential or occupiable commercial and industrial space. The Council approved the measure on August 13, 2025, and it will be phased in over three years, applying to improvements valued over $50,000.
Fee Structure:
Residential Improvements:
2026: 0.25% of the permit value (after subtracting the first $50,000)
2027: 0.5%
2028: 0.75%
Example: A $150,000 residential improvement would incur a CET fee of $250.
Commercial & Industrial Improvements:
2026: 0.33%
2027: 0.66%
2028: 1.0%
Revenue from the CET will be allocated to financial incentive programs to address Albany’s housing needs. At least 15% of the CET collected from residential construction will be allocated to support homeownership opportunities for low- to moderate-income households. The Albany Community Development Commission and City Council will collaborate over the next year to develop and refine programs supported by CET revenue.
For more information, visit https://www.albanyoregon.gov/hip, email This email address is being protected from spambots. You need JavaScript enabled to view it. , or call 541-917-7560.
