Practical Issues in Adopting Local Impact Fees

Municipalities cannot fund infrastructure at needed levels due to rapid growth, declining federal and state capital expenditures, rising costs for urban services, and taxpayers' revolts against tax increases. Adequate infrastructure is critical for building livable cities; therefore, local officials seek creative methods by which development can pay for itself. Of the existing methods, impact fees are most widely used. This article examines the legal, procedural, and equity issues that cities must be cognizant of to effectively adopt impact fees.