Salem, OR Accessory Structures: ADU Impact Fees (2026)
Key Facts
- ADU SDC status
- Fully exempt under SRC 41.150(a)(9)
- Standard SDC trigger
- Building permit issuance (SRC 41.140(a))
- SDC categories
- Water, wastewater, stormwater, transportation, parks
- Fee-setting authority
- Set by Council resolution, adjusted annually
- Appeal window
- 10 days to challenge a calculation
Summary
Salem charges system development charges (SDCs), its impact fees for water, wastewater, stormwater, transportation, and parks capacity, on nearly every new development citywide, but SRC 41.150(a)(9) carves out a blanket exemption for 'any accessory dwelling unit.' A new ADU in Salem therefore owes no SDC at building permit issuance, unlike most other new residential construction, which pays the charge under SRC 41.110.
Sec. 41.110(a): "System development charges are hereby imposed upon all development within the City and on development outside the City where there is a connection to or use of a City capital improvement for which a methodology has been or is hereinafter adopted, except where development is exempt under the provisions of SRC 41.150." Sec. 41.150(a): "The charge imposed under this chapter shall not apply to the following:...(9)Any accessory dwelling unit."
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 1).
Full Breakdown
140(a). 100). 150(a) lists twelve categories of development the charge does not apply to, and subsection (9) states simply: any accessory dwelling unit. 150(a)(5), which requires the unit to serve households at or below 80 percent of area median income and record a deed restriction for 5 to 30 years. 150(a)(9) itself; the Building and Safety Division applies it when calculating fees due with the building permit. 170(e)), so the dollar value of the exemption an ADU receives changes each year with the underlying fee schedule, even though the exemption itself is fixed in the code.
Violations & Fines
There is no penalty specific to the ADU exemption itself since no charge is owed. But if a permit is later found to be misclassified, for example an accessory structure that does not qualify as an accessory dwelling unit, the City may recalculate and bill the omitted system development charge, and a person who disputes that calculation must file a written challenge with the Director within ten days of receiving it (SRC 41.180(a)).
Frequently Asked Questions
Do accessory dwelling units pay system development charges in Salem?
Does the ADU SDC exemption require income limits or a deed restriction?
When are system development charges normally due in Salem?
Sources & Official References
Other rules in Salem
Compare Salem to another location·View the Oregon accessory structures overview
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