What is a developmental impact fee?

A developmental impact fee (DIF) is a fee that a local government may impose on new development projects in order to pay for the costs of accommodating the additional development. They are a form of taxation levied on developers in many states, including California, to help mitigate the impacts of new development on public infrastructure and services. The California legislature has passed several laws designed to protect the citizens of California from the negative impacts of new development. These laws provide for the imposition of DIFs on new development, which are meant to ensure that the cost of accommodating new development does not fall disproportionately on existing taxpayers. The DIFs are used to fund or reimburse the cost of public infrastructure and services that are needed due to the new development. The DIFs are based on the projected impacts of the new development on public infrastructure and services. For example, if a new development is projected to increase traffic on nearby roadways, a DIF could be imposed to construct or widen the roads to handle the additional traffic. If the new development is expected to increase the need for schools, a DIF could be imposed to pay for the cost of building additional schools. Developmental impact fees are a tool that local governments can use to ensure that the cost of new development is borne by the developer, rather than by existing taxpayers. This helps to ensure that the cost of accommodating new development is spread out more evenly and that taxpayers are not unfairly burdened with the cost of accommodating new development.

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What is a developmental impact fee?

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