Impact fees are charges that are imposed on new development in order to fund the construction or improvement of infrastructure that is needed to support the additional growth. These fees are typically assessed by local governments, and may be based on the size of the development or the number of new units or dwellings that are being built. Impact fees are used to cover the costs of things like roads, schools, water and sewer systems, and other public amenities that are needed to support the growth that is being generated by the new development. In the construction industry, impact fees can be a significant factor in the cost of building a new project, and developers may need to factor them into their budgeting and financial planning. Impact fees are intended to ensure that the costs of supporting new growth are fairly distributed and not borne solely by existing residents or taxpayers.

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