Impact fees

Impact fees are a type of fee that cities or towns might impose on new developments in their area. The fee is meant to provide some compensation for the new costs (an 'impact') that might result from the development, such as an increased public need for more roads or more police officers. The fee is usually paid by the developers of the new developments and charged for every new home or other structure that is built. This helps cities or towns handle the increased costs that might come from population growth in the area.