What are impact fees?

Impact fees are one-time charges levied by local governments on new development to help pay for the increased demand on public infrastructure and services, such as roads, parks, and schools, brought about by that new development.

Impact fees are typically based on the type and size of the new development, and are used to mitigate the negative impacts that would otherwise be borne by the general public.

For example, a new residential development might be charged an impact fee to help cover the cost of expanding the local school district, while a new commercial development might be charged an impact fee to help pay for the construction of a new road or intersection.