Last year, there has been quite a buzz when the court of Queen’s Bench ruled against the impact fee in Winnipeg. This has made people wonder about what exactly the impact fees are and what is this all about. Don’t stress out, because in this article you will get information about the impact fee.
The Impact Fee:
Municipal developers in the city often work on improving public services and develop new projects to manage the growing population within the city and it often involves creating and developing new and existing suburbs and exurbs’. An impact fee is a price charged for one time on developers to gain funds or adjust the cost of their further public service projects, this may include transportation facilities, infrastructure that is required by the growing population and those that will be associated with the new development projects. However, the impact fee is not imposed by the federal law; they are rather charged or imposed by the State or local laws.
Any Other Names of Impact Fees
Unlike in North America, Manitoba, the impact fees are also known as facility fees in North Carolina, as mitigation fees in Washington and California; They are often known as mobility fees in Florida; charges of system development in Oregon; Charges for service availability in Minnesota. It is known as adequate facility taxes or excise taxes in states such as Tennessee, Kansas, and Colorado. They are also referred to as fair-share fees if the developer contributes to them. However, in most places, they are known as development fees or impact fees. Though isn’t common in transit.
Does it provide any Benefits?
As you may have got the idea that it is charged mainly because of adjusting the cost of the new development projects, the impact fees are applied on all the new development projects within an authority, they will help create a scenario where certainty for a project for developers can be predicted. If an area is lacking the infrastructure capability, then it can be helpful in re-directing the development to those areas where existing infrastructure is already good enough to accommodate the new development. Furthermore, it has been seen that the buildable land for a developer is more accessible because of the impact fee. Without impact fees, municipalities in any city will not have sufficient funds and investment to improve or start a new project to compete with the growing population in the city. Impact fees enable municipalities to get enough funds for sewer, water, and transportation infrastructure to open new opportunities for development projects.
The Negative Side
These days, there has been discussion among the residents of the cities and developers that instead of asking for an impact fee, they should be looking for ways to start new projects that will not bankrupt the city. Not only just that, but it could also be a burden to families with fixed incomes where utility bills and rents are ever-increasing. Instead, the property tax should be enough or there should be an equal fee after a thorough discussion and after taking opinions from residents and local developers.