What is an impact fee?
The New Mexico Development Fees Act says “‘impact fee’ means a charge or assessment imposed by a municipality or county on new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development .” The term does not include utility hook-up fees, dedication of rights of way or easements or construction or dedication of on-site water distribution, waste-water collection or drainage facilities, or streets, sidewalks or curbs if the dedication or construction is required by a previously adopted valid ordinance or regulation and is necessitated by and attributable to the new development. The New Mexico Development Fees Act of 1994 forbids the financing by impact fees for libraries, community centers, schools or transit equipment.
