What are Impact Fees? 13 Things (2025) You Need to Know - Gokce Capital What is an impact fee? An impact fee is a fee imposed by a local government within the United States The fee may be on a new or proposed development project to pay for all or a share of the costs of providing public services
Impact Fees: How They Work and Real-Life Examples Impact fees are one-time charges imposed on property developers by municipalities These fees are designed to fund new infrastructure and services necessitated by the development Impact fees can vary by jurisdiction and can impact construction costs and land development potential
What Are Impact Fees Why You Need to Know Them What Are Impact Fees? “(Developer) impact fees are a charge or tax on construction to pay for associated capital development,” said Julian “The money has to be used for public facilities ” Impact fees are used primarily to fund new streets, parks, utilities, and emergency and government services
FHWA - Center for Innovative Finance Support - Fact Sheets What is an impact fee? An impact fee is a one-time capital charge imposed on developers by municipalities to help fund the capital cost of the additional public services, infrastructure, or transportation facilities necessitated by, and attributable to, new development
Impact Fees — Local Government Do’s and Don’ts - MRSC Impact fees are one-time charges assessed by a local government against a new development project to help pay for new or expanded public facilities that will directly address the increased demand created by that development
Impact Fee Definition Example - InvestingAnswers What is an Impact Fee? Real estate developers pay an impact fee to cities or other municipalities to offset the town's cost of building the infrastructure to support a private real estate development How Does an Impact Fee Work? Let's say Company XYZ wants to open a new store location at 123 Main Street
Understanding Impact Fees in the United States: A Comprehensive Guide Impact fees, also known as development impact fees or exactions, are charges imposed by local governments on new development projects These fees are intended to address the increased demand for public services and infrastructure resulting from the development
Debate and legal issues surrounding Impact Fees Impact fees are a type of exaction — a requirement that developers pay for, or provide, a public facility or public good in order to receive permission to undertake a proposed project Other types of exactions include linkage fees or the dedication of land for a park, school or roads