Impact fee

An impact fee is like a toll you pay when you use a road. When a new building or development is built, it has an impact on the community around it. Impact fees are a way to help pay for the cost of this impact. It's like a fee paid by the builder, kind of like when you pay for your ticket at a movie theater or a theme park.

The fee is paid to the local government, and it helps pay for things like better roads, parks, and schools. The idea is that this helps balance out the costs of new construction on the community. So if you build a new house or a mall, you have to pay an impact fee to help pay for these things.

Different cities and towns have different impact fee rates. Some places may have higher fees if the new building will have a bigger impact on the community. For example, if a new store is built in a quiet residential area, there might be a higher impact fee to compensate for the increased traffic and noise it might cause.

Overall, impact fees help make sure that builders and developers help pay for the costs their building or development might have on the community. This helps keep the community in balance and makes it a more pleasant place to live!