Services listed are a range assessed by governmental agencies throughout the state. Dollar amounts of fees are limited to those charged to residential builders. Comments in quotations are from staff members of state and local HBA offices.
Alabama
Services funded with impact fees: Sewer, roads, schools, "any number of fees working their way up to availability of public facilities"
Per unit fee: $2,000-$5,000
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No
Challenges: Birmingham area builders fighting impact fees in Shelby County.
Alaska
Services funded with impact fees: None
Per unit fee: $0
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No
Challenges: None.
Arizona
Services funded with impact fees: Water, sewer, police and fire protection, parks, roads, libraries, storm water drainage, solid waste, equipment repair facilities
Per unit fee: $1,868-$10,354
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: Yes
Challenges: None, but state HBA will seek legislative changes to limit the use of impact fees if the political climate is favorable.
Arkansas
Services funded with impact fees: Water, sewer, and "a couple others"
Per unit fee: About $3,500
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No. HBA is supporting a proposal in favor of impact fees, paid by the buyer at closing or when they pay their utility deposit
Challenges: Suit filed in state court in Bentonville disputing the right of the municipality to impose sewer, water, and fire impact fees. "We consider them a tax, not a fee, and as such the residents didn't have any right to participate in the decision."
California
Services funded with impact fees: Schools, roads, water and sewer, solid waste, parks, police and fire, preservation of open space, libraries, inclusionary housing
Per unit fee: $30,000-$40,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: None involving state or local HBA offices.
Colorado
Services funded with impact fees: water, roads, parks, libraries sewer, roads, schools, "any number of fees working their way up to availability of public facilities"
Per unit fee*: $30,000-$40,000
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: None. Litigation is anticipated as state begins to enforce the new legislation limiting fees to the direct impact of the development and requiring funds to be separated and used only for the stated purpose.
*Denver's inclusionary housing law requires developers who don't set aside 10 percent of lots in projects of 30 units or more for affordable house to pay a fee of $75,000 per unit to opt out
Connecticut
Services funded with impact fees: Sewer, water, schools, roads, parks and recreation
Per unit fee: Not available by state HBA
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No
Challenges: State HBA plans to fight for state-enabling legislation for school impact fees in up coming legislative session.
Delaware
Services funded with impact fees: Schools, sewers, "on and on"
Per unit fee: $25,000
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No
Challenges: None.
Florida
Services funded with impact fees: Transportation, schools, police, fire, parks, water and sewer connection
Per unit fee: Orlando area -- $6,000-$8,000; Miami area -- $10,000-$15,000; Brevard County -- $1,197; Bradenton -- $2,000. Some communities pass the $20,000 mark
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: No
Challenges: State association challenging fees in Lee County over how the fees are calculated; developers fighting 63 percent increase in fees in Lake County.
Georgia
Services funded with impact fees:Transportation, roads, parks, libraries, e-911 police/fire facilities, water, sewer, storm water
Per unit fee: Atlanta -- $1,382 to $1,544; Alpharetta -- $1,141; Cherokee County -- $1832; McDonough -- $1,200
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Greater Atlanta Home Builders Association has suits pending in state and federal court. State case involves Cherokee County's assessment and collection of impact fees in the county for services that primarily benefit city residents who do not pay an impact fee; builders awaiting Georgia Supreme Court's decision to hear the case.
Hawaii
Services funded with impact fees: Roads, water, sewer, parks, schools, affordable housing, storm water, libraries, solid waste
Per unit fee: $10,000-$15,000, when fees and exactions are added together; $1,836 for roads in Ewa; $4,720 for affordable housing in Hilo
Home rule/Dillon rule: Home rule
State-enabling legislation: Yes
Challenges: None.
Idaho
Services funded with impact fees: Roads, water, sewer, waste water, parks, police and fire are permitted by state statute; local governments currently assessing fees for parks, roads, police, and fire
Per unit fee: $530-$1,294
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: Yes
Challenges: None on a state level.
Illinois
Services funded with impact fees: Libraries, fire districts, roads
Per unit fee: No set amount; $30,000 not unusual in high-growth areas
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: Local groups struggling with "millions and millions of dollars of contributions" required in annexation agreements. The Attainable Housing Alliance (AHA), which represents several builder groups and other plaintiffs, including homeowners and a single-family home builder, filed suit in January 2002 against McHenry County charging that school impact fees imposed from 1991 to 2001 were illegal and unconstitutional. Case dismissed by the court in May; AHA refiled in August.
Indiana
Services funded with impact fees: Parks, roads, sewers
Per unit fee: About $1,600 for roads and parks; $1,500-$4,000 for sewer fees
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: Sewer tap fees in northern part of the state were challenged; builders negotiated a compromise. Builders in Indianapolis working with the city to try to defeat a proposed ordinance to require builders to pay to connect residents on septic tanks to sewer systems.
Iowa
Services funded with impact fees: None
Per unit fee: $0
Home rule/Dillon rule state: Home rule; local government can't create a new tax without state approval
State-enabling legislation for impact fees: No
Challenges: Home Builders of Greater Des Moines recently won state Supreme Court appeal against the City of West Des Moines for its collection of a park dedication fee, effectively outlawing impact fees in the state. Cities will propose state-enabling legislation in the 2003 session.
Kansas
Services funded with impact fees: Water and sewer
Per unit fee: About $2,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: No
Challenges: None related to impact fees. State HBA to introduce legislation in 2003 session requiring rational nexus, fee segregation, and excise tax refunds as are required for impact fees.
Kentucky
Services funded with impact fees: In Lexington, parks, sewers, preservation of green space, other infrastructure costs
Per unit fee: .02 per square foot for parks; average of $2,000-$4,000 divided between green space, sewers, other infrastructure
Home rule/Dillon rule state: Dillon rule (many municipalities maintain they are home rule)
State-enabling legislation for impact fees: No
Challenges: Builders sued the City of Pewee Valley, which charged a "culvert fee" of 1 percent of cost of land and new development, or $500. Circuit Court ruled the city lacked statutory authority to assess the fee; the case is on appeal.
Louisiana
Services funded with impact fees: Water, sewer, in St. Tammany Parish. Technically not an impact fee; the fee is "voluntary"
Per unit fee: Not available from state HBA
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No
Challenges: None.
Maine
Services funded with impact fees: Water, sewer, waste water, parks, schools, police and fire, roads
Per unit fee: $1,500-$5,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Local builder's association is suing the town of York over a school impact fee.
Maryland
Services funded with impact fees: Schools, roads, parks and recreation, libraries (including books), police and fire protection (including purchase of vehicles), water, sewer, agricultural land preservations
Fee amount: $3,000-$7,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: No
Challenges: Counties throughout the state are considering "huge increases" and pressing to expand the range of applicability. Developers fighting fee increases in several counties.
Massachusetts
Services funded with impact fees*: Water, sewer, storm water, roads
Per unit fee: Not tracked by state HBA, Department of Housing and Community Development, or the Massachusetts Municipal Association
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No. It has been under consideration and successfully opposed, as have home-rule petitions from local government to auhorize impact fees
Challenges: No current legal challenges. The state association anticipates that enabling legislation will be re-introduced in the upcoming legislative session.
*No formal impact fees, but there is an active, informal system of fee assessments.
Michigan
Services funded with impact fees*: None
Per unit fee: $0
Home rule/Dillon rule state: Home rule
State-enabling legislation: No
Challenges: "We've been very successful on holding this off on a statewide basis."
*Communities often negotiate with developers for infrastructure improvements, uch as de-acceleration lanes and traffic signals, to expedite permits.
Minnesota
Services funded with impact fees: Parks, water, sewer, roads, police and fire, administration of building codes
Per unit fee: $365-$16,000
Home rule/Dillon rule state: Home rule, except for taxation
State-enabling legislation for impact fees: No
Challenges: None. In 2001, state legislature passed a bill requiring municipalities to report income from fees. First report due in April. Bill has no enforcement provision for municipalities charging excessive fees. With a $3 billion deficit in the state budget and legislative changes in education funding, state HBA anticipates local governments to propose school impact fees.
Mississippi
Services funded with impact fees: Roads
Per unit fee: $700-800
Home rule/Dillon rule state: Home rule
State-enabling legislation: No
Challenges: HBA sued City of Madison and settled out of court. The city's insurance company then sued the city; case is pending in federal court to determine legality of impact fees.
Missouri
Services funded with impact fees: Sewer, roads, schools, parks
Per unit fee: 0 to $2,000; fee for roads in Kansas City is between $704 and $719. One city, Lee's Summit, has a voluntary $1,000 impact fee for schools.
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: No
Challenges: None. Greater Kansas City HBA, however, supports impact fees over excise taxes.
Montana
Services funded with impact fees: Police, fire, sewer water, streets, parks
Per unit fee: $2,500-$6,800
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: No. HBA-supported legislation to be presented to state legislature
Challenges: State and local HBA sued City of Bozeman over constitutionality of fees; court ruled city did not have authority to implement and collect fees, ordered money returned. Disposition pending.
Nebraska
Services funded with impact fees: None
Per unit fee: Exactions range from $1,300-$3,000 per unit
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: No. Introduction of enabling legislation is anticipated in the 2003 session
Challenges: HBA of Lincoln is mounting a public campaign to oppose a proposed ordinance to start impact fees at $2,500, rising to $4,500 in four years. A legal challenge is anticipated if the ordinance is passed. Metropolitan Omaha Builders Association stopped the City of Omaha from awarding a contract to a consultant to determine street impact fees and excise taxes.
Nevada
Services funded with impact fees: Drainage, police and fire stations, sewers, storm sewers, roads and water are authorized by state statute; in practice, only fees collected are for roads in Reno and Washoe County. Variety of services funded through exactions, special fees, dedications, taxes, and improvement districts that are "back-door" impact fees
Per unit fee: $25,000-$30,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: Yes
Challenges: None. Builders working to educate local jurisdictions to follow state law and use impact fees instead of the current exaction process.
New Hampshire
Services funded with impact fees: Roads, water, sewer, storm water, solid waste, parks, fire, police, libraries, schools
Per unit fee: Average of $2,500
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: None.
New Jersey
Services funded with impact fees: Water, sewer, roads, storm water
Per unit fee: As high as $5,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: No. Two bills introduced in current session; state HBA opposes one and supports the other, which would expand collection of fees for schools construction
Challenges: None.
New Mexico
Services funded with impact fees: Roads, sewer, water, fire protection, libraries, parks and recreation
Per unit fee: From a few hundred to a few thousand dollars
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Nine years after state legislature required municipalities to pass impact fees, Albuquerque has yet to act. Albuquerque area builders failed to head off 'smart growth' ordinances in September that created zones in the city, tying impact fees to growth management goals instead of capital costs of services. Considering litigation to force the city to pass impact fees that comply with state law.
New York
Services funded with impact fees: subdivision plans, site plans, land development, water, sewer, roads, parks and recreation, open space, drainage
Per unit fee: A wide range depending on the service and the consulting fees associated with it
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: No. New York State has case law in favor of limiting impact fees, including consulting fees. (Reference case: Cimato Bros. Inc. vs. Town of Pendleton, which was upheld by the Appellate Division of the Supreme Court of New York State)
Challenges: NYSBA supported a bill on the Limitation on Town Planning Review Fees (A.682/S.4652) that was still being reviewed by committees in both houses at the end of session. This legislation would place a cap on fees charged to applicants by attorneys, engineers, or surveyors by setting up objective criteria and not exceeding normal town charges for such services. NYSBA's legal defense fund also takes on cases of this nature although there are currently none pending relating to impact fees.
North Carolina
Services funded with impact fees: Water, sewer, roads, schools, drainage, parks, open space, greenways
Per unit fee: Average of $3,000; as high as $14,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: No
Challenges: Series of legislative initiatives proposing impact fees, all defeated in the General Assembly.
North Dakota
Services funded with impact fees: None
Per unit fee: $0
Home rule/Dillon rule state: Home rule
State-enabling legislation: No
Challenges: None.
Ohio
Services funded with impact fees: Water and sewer, parks and open space
Per unit fee: $800-$8,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: No; a state HBA-supported statute is under consideration
Challenges: None.
Oklahoma
Services funded with impact fees: Roads, water, sewer
Per unit fee: In Norman, $2 per square foot on residences over 1,200 square feet; in Stillwater, $493 for water, .35 per square foot for sewer
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: No; a state HBA-supported statute is under consideration
Challenges: None.
Oregon
Services funded with impact fees*: Water, sewer, storm water, transportation, parks
Per unit fee: $0 to $20,000 per house
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: None to the authority or the statute. Several challenges to selected methodologies and/or applications of specific charges; most have been settled. One case involving the city of Tigard is headed for the U.S. Supreme Court to determine if the landmark case of Dolan applies to the legislative enactment and imposition of impact fees.
*Referred to as system development charges.
Pennsylvania
Services funded with impact fees: Water, sewer, transportation, recreation
Per unit fee: Maximum of $500 per home for transportation (rarely imposed because of extremely tight legal standards); $1,000 to $6,000 for water and sewer; no more than $200 for recreation
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: Yes
Challenges: As the result of numerous court challenges, state HBA is negotiating changes to state legislation to refine and clarify water and sewer tap-in fees and make the calculations more precise.
Rhode Island
Services funded with impact fees: Water, wastewater, roads, storm water management, parks, police and fire facilities, schools, libraries, and "other public facilities consistent with a community's capital improvement program"
Per unit fee: Sewer fees in the $200 range; other fees range from $1,500 to $9,000
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: State HBA has challenged an impact fee imposed by the town of Coventry.
South Carolina
Services funded with impact fees: Roads, water, sewer, parks and recreation, police and fire
Per unit fee: Varies widely; highest single fee is $2,500
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Movement among municipal officials to give school boards authority to assess impact fees.
South Dakota
Services funded with impact fees: Water, in Rapid City
Per unit fee: $1,000
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: State HBA has challenged an impact fee imposed by the town of Coventry.
South Carolina
Services funded with impact fees: Roads, water, sewer, parks and recreation, police and fire
Per unit fee: Varies widely; highest single fee is $2,500
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Movement among municipal officials to give school boards authority to assess impact fees.
South Dakota
Services funded with impact fees: Water, in Rapid City
Per unit fee: $1,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: HBA will re-introduce legislation in the 2003 legislative session. Black Hills HBA looking for appropriate case to file litigation against impact fees.
Tennessee
Services funded with impact fees: Roads, police, water, fire, sewers, schools, libraries, parks
Per unit fee: Average of 90 cents per square foot
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: No
Challenges: Middle Tennessee HBA challenging development privilege tax in Maury County assessing viability of federal challenge of the state's position that development is a privilege.
Texas
Services funded with impact fees: Transportation, roads, water and sewer services, parks. Fees can only be used for capital expenditures or facilities expansion
Per unit fee: $1,600 to $5,000; in Austin, average is $4,000
Home rule/Dillon rule state: Home rule
State-enabling legislation: Yes
Challenges: Home Builders Association of Greater Austin fighting City of Round Rock on two issues: the adoption of impact fees on roadways in extra-territorial jurisdictions outside their city limits, and the division of developments into mini-districts that allow the city to assess fees that exceed the total cost of the projects. Builders attempting negotiation before filing suit.
Utah
Services funded with impact fees: Parks, open space and trails, police and fire, roads, sewer, water, storm water, municipal power facilities
Per unit fee: Average $8,000-$10,000. Some areas substantially higher -- Park City, about $25,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation for impact fees: Yes
Challenges: None involving the state HBA.
Virginia
Services funded with impact fees*: Schools, roads, libraries, fire and rescue, police, parks. Water and sewer tap fees also assessed.
Per unit fee: $5,000 -- $25,000, increasing across the board. Water and sewer tap fees $3,000 -- $8,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: No
Current challenges: None related to impact fees
*Virginia uses a system of "voluntary" cash proffers.
Vermont
Services funded with impact fees: Schools, recreational facilities, roads, water, sewer, storm water, police and fire, solid waste, libraries.
Per unit fee: $2,000-$6,000
Home rule/Dillon rule state: Dillon rule
State-enabling legislation: Yes
Challenges: None.
Washington
Services funded with impact fees: Schools, roads, parks, sewer, water, fire services
Per unit fee: As high as $28,000 under the Growth Management Act (GMA). Under the State Environmental Protection Act (SEPA), fees do not have a set amount per service. Instead, local jurisdictions apply a fee level on a case by case basis with no cap. SEPA impact fees may be well above the $28,000 GMA fee level
Home rule/Dillon rule state: Home rule
State-enabling legislation for impact fees: Yes
Challenges: Class action refund case against Kitsap County. The county's comprehensive plan wasn't in compliance, but the county continued to impose impact fees. Court ruled last September that the county didn't have the authority to impose fees; county may appeal. Class action suit against Clark County, which admitted overcharging $700,000 in impact fees, but doesn't know if the money should be returned to the home builders or the home buyers. Proposed settlement is for home builders to receive 68.75 percent of the refund and home buyers 31.25 percent. In the upcoming legislative session, the builder association may propose allowing local jurisdictions to increase the Real Estate Excise Tax by .25 percent for school construction, remodeling, and refurbishment in lieu of charging impact fees.
Published in BIG BUILDER Magazine, January 2003
