Who pays impact fees?
The developer of a proposed development pays the impact fee, although the developer will, as a practical matter, pass the costs of these fees onto the purchasers of the developed property. The local government examines the proposed development, determines what facilities will be required to sustain the desired level of service, and charges the developer a fee to cover a portion of the cost of the needed system improvements. For more information on this topic, see MRSC’s Web page on impact fees. • What are impact fees? Impact fees are charges assessed against newly-developing property that attempt to recover the cost incurred by a local government in providing the public facilities required to serve the new development. Impact fees are only used to fund facilities, such as roads, schools, and parks, that are directly associated with the new development. They may be used to pay the proportionate share of the cost of public facilities that benefit the new development; however, impact fees
