Cost of impact fees: who pays for them and what they fund

We recently found a study done on impact fees: what they fund, what percentage is allocated where, and to whom the highest impact fees are imposed. We found it so interesting, we developed an infographic using the information to share with everyone here at the Clerk Cafe. Here are the results.

You may find it interesting to see what types of structures are charged the most, and what programs the fees contribute to.

What are impact fees?

Impact fees are fees imposed by local government on new or proposed development projects to pay for the cost of providing public services (water, sewer, gas, streets, sidewalks) to that development. Developed to help reduce the economic burden on governments dealing with population expansion, impact fees are needed to fund many local capital improvement projects.

What types of facilities do impact fees fund?

Some examples of common facilities and services funded by impact fees are roads, water, waste-water, drainage, parks, libraries, fire departments, police, government, and schools.

What service account for the largest use of impact fees?

Anywhere from 70 percent, up to 93 percent of impact fees fund non-utility services. The largest amounts of monies distributed are generally used to pay for schools, followed by water services, sewer, roads, parks, general government, then drainage. A very small amount is used to fund fire departments, libraries, and police.

What type of structures has the highest impact fees?

According to this infographic, single-family units are imposed the highest impact fees, averaging about $11,583 a unit. Following single-family homes, multi-family units account for the second highest impact fees ($6718), then retail units ($6347), offices ($4483) and finally, industrial spaces ($3190).

We want to hear from you…does this seem fair? What should be charged the most in impact fees, the least, and why?

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