In Washington State impact fees are authorized by the 1990 and 1991 Growth Management Act. While over thirty-seven Washington counties collect impact fees, the purpose, scope and consequences of impact fees have been the subject of much debate and considerable misunderstanding. Five observations may be made about Washington State's experience with impact fees. Impact fees encourage development predictability. Impact fees encourage free-market principles.
Impact fees help abate tax increases while maintaining public services.
Impact fees benefit taxpayers, home buyers, and private developers. Impact fees promote sustainable economic development. Impact Fees Are Reasonable 1. Whether or not impact fees raise or lower the cost of housing is often debated, and indeed the answer may vary depending upon the market and the fees, among other things. When consistently applied, however, impact fees result in greater land use predictability, which is good for developers, and good for consumers, because greater land-use predictability can lead to more affordable housing prices, greater environmental protection, and a more predictable supply of housing stock.