ABSTRACT
Impact fees are one-time charges levied against new development and are earmarked to pay for new infrastructure made necessary by the development. Fees are most commonly used to finance water and sewer systems, roads, libraries, parks, public safety infrastructure, and schools, although some states have limited their use to specific functions and prohibited their use for others. The objective of a fee system is to require new development to fund a portion of the cost of infrastructure it requires, thereby reducing or eliminating the portion borne by existing property owners. In recent decades, the fees have become increasingly popular, especially among rapidly developing communities. The effects of a fee system on development are mixed, encouraging some types, and discouraging others. The incidence of the fees is dependent on local circumstances with existing residents often bearing some cost of the fee system.
