1. What Are Impact Fees?

Impact fees are charges imposed by local governments on new development projects to help fund the infrastructure needed to support growth. These fees cover costs for roads, schools, parks, utilities, and other public facilities required by new residents or businesses.

2. How Does the Calculator Work?

The calculator uses the impact fee formula:

Where:

• \( \text{Development Size} \) — Number of units, square footage, or other development metric
• \( \text{Rate per Unit} \) — Fee amount charged per unit of development
• \( \text{Impact Fee} \) — Total fee amount in dollars

Explanation: This straightforward calculation multiplies the scale of development by the established fee rate to determine the total infrastructure impact cost.

3. Importance of Impact Fee Calculation

Details: Accurate impact fee calculation is essential for developers to budget project costs, for municipalities to fund necessary infrastructure, and for ensuring that growth pays its fair share of public facility costs.

4. Using the Calculator

Tips: Enter the development size in appropriate units (residential units, square feet, etc.) and the applicable rate per unit. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of development typically pay impact fees?
A: Residential subdivisions, commercial developments, industrial projects, and institutional facilities that generate additional demand on public infrastructure.

Q2: How are impact fee rates determined?
A: Rates are typically established through comprehensive studies that calculate the proportional share of infrastructure costs attributable to new development.

Q3: Can impact fees be negotiated or waived?
A: Some jurisdictions offer credits, exemptions, or reduced rates for affordable housing, economic development projects, or other public benefits.

Q4: When are impact fees typically paid?
A: Fees are usually due before building permits are issued or at the time of final plat approval, depending on local regulations.

Q5: Are impact fees the same as property taxes?
A: No, impact fees are one-time charges for new development, while property taxes are ongoing annual payments for all property owners.