17.15.050 Exemptions and Discounts.

City Code Section

(Amended by Ordinances 171698, 173437, 177198, 181322, 182389, 182652, 183679, 183448, 184756, 185195, 185987, 187821, 188619, 188757, 188758, 189050, 189323, 189651 and 190381, effective April 30, 2021.) 

  1. The uses listed and described in this section shall be exempt, either partially or fully, from payment of the Transportation SDC.  Any Applicant seeking an exemption or a discount under this Section shall specifically request that exemption within 180 days after building permit issuance for the New Development.  Where New Development consists of only part of one or more of the uses described in this section, only that/those portion(s) of the development which qualify under this section are eligible for an exemption or discount.  The balance of the New Development which does not qualify for any exemption or discount under this section shall be subject to the full SDC.  Should the Applicant dispute any decision by the City regarding an exemption or discount request, the Applicant must apply for an alternative exemption calculation under Section 17.15.070.  The Applicant has the burden of proving entitlement to any exemption so requested.
  2. A.  Temporary Uses are fully exempt so long as the use or structure proposed in the New development will be used not more than 180 days in a single calendar year.
  3. B.  New Development that will not generate more than 15 percent more Person Trips than the present use of the property generates and that will not increase Person Trips by more than 25 Person Trips shall be fully exempt.
  4. C.  Certain structures and uses are exempt to the extent established by Section17.14.070 of this Code.
  5. D.  Discount of the Transportation SDC may be available for qualified land use types described in this Subsection and located within designated areas of the City. The Applicant has the burden of proving entitlement to any discount so requested. For projects located within the North Macadam TSDC Overlay area or Innovation Quadrant TSDC Overlay area, the discount is only applicable to the Citywide TSDC.  No discount may be applied to the North Macadam Overlay TSDC or the Innovation Quadrant Overlay TSDC.
    1. 1.  To qualify for a discount, the Applicant must demonstrate the following:
      1. a.  The New Development will be located within the Central City or other centers as designated by the Bureau of Planning and Sustainability. Other centers include the Gateway Plan District, areas within Town Centers and Neighborhood Centers as mapped in the new 2035 Comprehensive Plan, and parcels within 1,000 feet of light rail stations (excluding single-family, OS, and IG and IH zones).
      2. b.  The New Development will meet the eligibility criteria listed in the following table:

      3. Residential

        Single Family (1,200 square feet or more)

        Ineligible

        Single Family (1,199 square feet or less)

        Ineligible

        Multiple Family

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Senior Housing/Congregate Care/Nursing Home

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Commercial – Services

        Bank

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Day Care

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Hotel/Motel

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Service Station / Gasoline Sales 

        Ineligible

        Movie Theater/Event Hall

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Carwash

        Ineligible 

        Health Club / Racquet Club

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Commercial – Institutional

        School, K-12

        Eligible 

        University / College / Jr. College

        Eligible 

        Church

        Eligible 

        Hospital

        Eligible 

        Park

        Eligible 

        Commercial - Restaurant

        Restaurant (Standalone)

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Quick Service Restaurant (Drive-Though)

        Ineligible

        Commercial - Retail

        Shopping/Retail

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Convenience Market 

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Free Standing Retail Store/ Supermarket

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Car Sales - New / Used

        Ineligible

        Commercial – Office

        Administrative Office

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Medical Office / Clinic

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Industrial

        Light Industry / Manufacturing

        Eligible if in mixed use site that is built to at least 75% of max FAR

        Warehousing / Storage

        Ineligible

        Self-Storage

        Ineligible

    2. 2.  The following Transportation SDC discounts apply to eligible land uses:
      1. a.  Central City – 33 percent reduction
      2. b.  Other Centers– 8 percent reduction
  6. E.  Graded Scale:  A change in use of an existing building where the gross enclosed floor area does not exceed 3,000 square feet is fully exempt.  A change in use of an existing building where the gross floor area is between 3,000 square feet and 5,000 square feet shall be assessed on a graded scale.  The percentage of the rate to be assessed on the entire existing building shall be calculated by the following equation:
  7. (size of existing building - 3,000 square feet) / 2,000 square feet
  8. Examples of Graded Scale Assessment Calculations
  9. (4,000 - 3,000) / 2,000 = 0.50   Existing 4,000 square foot building assessed at 50% of the rate
  10. (3,200 - 3,000) / 2,000 = 0.10   Existing 3,200 square foot building assessed at 10% of the rate
  11. (4,900 - 3,000) / 2,000 = 0.95   Existing 4,900 square foot building assessed at 95% of the rate
  12. F.  Alteration permits for tenant improvements, new construction or remodeling are fully exempt where:
    1. 1.  no additional dwelling unit(s) or structure(s) are created;
    2. 2.  the use or structure will not result in an increase in additional Trips according to the City Rate Study and, if applicable, the North Macadam Overlay Rate Study or the Innovation Quadrant Overlay Project Report;
    3. 3.  the use or structure is of a temporary nature and is used less than 180 days in a calendar year.
  13. G.  The construction of accessory buildings or structures which will not create additional dwelling units or which do not create additional demands on the City’s capital improvements are fully exempt.
  14. H.  For New Development which includes a mix of exempt and non-exempt forms of development, the applicable exemption(s) shall apply only to that portion of the New Development to which the exemption applies.

Upcoming and Recent Changes

Ordinance No. 190381

Effective Date

Ordinance No. 190381 has two effective dates:

Directive b is effective April 30, 2021:  Amend Titles 8, 15, 17, 21, and 30 of the Portland City Code, as shown in Exhibit B, Shelter to Housing Continuum Recommended Draft Volume Three—As-Amended, dated April 2021, but excluding the amendments to Subsection 17.14.070 H. Note:  Directive b changes updated online May 4, 2021.

Directive c is effective August 1, 2021:  Amend Title 29 and Subsection 17.14.070 H. of the Portland City Code as shown in Exhibit B, Shelter to Housing Continuum Recommended Draft Volume Three—As-Amended, dated April 2021. Note:  Directive c changes will be posted online around August 1, 2021.

View all changes

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