MRC - Development Impact Fees Results in Job Growth from Paying for Prosperity: Impact fees and Job Growth

Many municipalities have turned to impact fees to pay the costs of growth. Opponents believe that impact fees constrain local economic development. Supporters argue impact fees act as an investment in the community, economic growth through new infrastructure. Property tax revenues increasingly fail to cover the full costs of the infrastructure needs to serve new development. For example a rapidly growing city in Georgia faced a $90 million shortfall in funding new infrastructure demanded by new development. This study found that impact fees are not a drag on local economies. Statistical analysis found a significant positive association between impact fees collected per building permit in one year and job growth over next two years. The study concluded that given tax limitations and growing infrastructure needs, communities in growing regions that have impact fees would become like to create jobs while providing that infrastructure.

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