ABSTRACT
Over the past three decades, exactions and development impact fees have become highly visible as a way to finance the infrastructure needed as a result of new development. Exactions encompass a broad range of local infrastructure requirements, including impact fees and land dedications, which are assessed during the permit approval process. 1 The term “impact fee” itself refers to local government charges for offsite capital facilities for water, sewers, sidewalks, and street improvements. Sometimes exactions and impact fees are used to mitigate the development’s social or economic impacts. These fees are distinguished from user fees, a broader term used for all fees that local governments charge for public services. Exactions and impact fees help ensure that new development has the infrastructure needed for a healthy city or county.
