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Impact Fees: Fees for Impact

As cities and regions grow, so does the demand for infrastructure. As infrastructure demand increases so does the costs needed to maintain, improve, and expand that infrastructure. Governments used to fund those improvement costs. However, they grew smart. The rising tax collections necessary to fund these improvements plus the massive expenditures necessary for continual upgrades became too great.

Enter Impact Fees. Impact fees are payments made to a municipality by a developer (real estate or property) to pay for some, or all, of the physical improvements needed by a proposed development and its consequential impact on the community. Instead of raising taxes on residents, the developer bears most of the burden.

The revenue collected from impact fees can only be used for capital improvements such as sewer mains, streets, water lines, parks, schools, and public safety.

For more info on impact fees, check out these sites:



Money collected from impact fees goes toward funding ALL of the infrastructure pictured above.

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