Definition of Impact fee:
These fees can also be levied against an individual or entity where its actions create an externality within a municipality. They are one-time charges for the creation of new infrastructure.
Industrial: Charge imposed on industrial projects to compensate for their negative social or environmental cost which will eventually be borne by the public.
Impact fees are fees imposed on property developers by municipalities for new infrastructure that must be built or increased due to new property development. These fees are designed to offset the impact of additional development and residents on the municipality's infrastructure and services, which include the city's water and sewer network, police and fire protection services, schools, and libraries.
Real estate: Charge imposed on land developers to cover the cost of infrastructure and related services that will have to be provided by the local or national government.
How to use Impact fee in a sentence?
- An impact fee is typically a one-time payment, issued by a local government on a property developer.
- The impact fee is determined based on the size of the new development, the cost of implementing it, and how much it will impact the surrounding area.
- The fee is meant to offset the financial and usage impact of the new development on the area's public infrastructure.
- The public infrastructure is meant to include roads, schools, parks, recreational facilities, and wastewater facilities, among others.
Meaning of Impact fee & Impact fee Definition