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Nov 01

Question 8: Can the Town Impose Impact Fees?

Posted on November 1, 2017 at 12:48 PM by Waxhaw Communications

Some have suggested Waxhaw control growth until our roadways and schools are improved to handle it. Questions have been raised about impact fees, higher developer application fees, moratoriums and more. Can the Town impose these and other ideas?

ANSWER: In North Carolina, cities and towns receive their authority to govern from the State. The State enacts laws to provide a framework and limits on governance from jurisdiction on how development happens and is built, to architectural guidelines for housing, building codes and more.  The State expects towns to behave a certain way when it comes to development and in doing so:

  • Impact fees are not allowed in most towns in North Carolina. We cannot charge for the "impact" the new development will have on the community.
  • Comprehensive plans are required to define how land can be used to protect the rights of property owners and the Town.
  • Application fees for development are only allowed to cover the municipality’s costs