By Andrea Calcagno
 
November 9, 2009
 
MEDFORD, Ore. - People who want to build a home or business in Ashland may soon be paying an extra dollar per square foot to the Ashland School District.
 
The school board listened to public comment about the idea Monday evening, and will decide in the coming months.
 
In 2007 the Oregon legislature passed a law allowing districts to tax development within the district.
 
If passed, the tax would be $1 for every square foot for residential building and .50 cents for commercial building projects.
 
"The timing couldn't be worse. Our economy is down, construction and jobs are down terribly in this industry right now," District Business Manager Jill Turner said.
 
49 other districts in Oregon have already passed the development tax since 2007, including Central Point and both Klamath County districts.
 
"I don't think there's ever the best time for a new fee or a new tax. But we believe we need to work on improving our infrastructure now as well as at all times," Turner said.
 
The Ashland School District says the money collected by the tax is predicted to be between $100,000 and $300,000 a year.
 
The district says the money would go to needed projects like a new irrigation system and school roofing.
 
"We're always struggling, roofs and those kind of costs our top priority has always been kids facilities always fall behind because there not our top priority and I think that's true in most school districts," Turner said.
 
Some say an added tax on construction won't make empty lots in Ashland fill up any faster.
 
"What's going to happen with this tax at a dollar to square foot is that your adding a few thousand dollars to the cost of construction of a house. It's going to make it more difficult for people to get into a house, especially for first time buyers, and these are the types of people we are trying to encourage to move to Ashland, people with kids," General Contractor Darrell Boldt said.
 
Commercial contractors also say the tax may deter business in Ashland.
 
"Our clients, they have choices about where they're going to put their businesses. And if they see another tax put on them for the pleasure of trying to do business or start a business they're going to look elsewhere," said Bob Mayers with Adroit Construction.
 
The tax does not need to be brought to the voters for approval. The Ashland School Board will discuss the issue at a December meeting, and if passed, it will go into affect February of 2010.