User fees are imposed specifically upon those who use the service. An impact fee must also be directly proportional to the impact of the use. A tax, on the other hand, is imposed equally upon all those who are assessed, without consideration of the the benefits received by those individuals. Like any government regulation, impact fees may from time to time need clarification and more definite guidelines. Because of new legislation, they are being carefully scrutinized to prevent their improper imposition and use.
Growth is a painful, but necessary process.
All members of a community must pay for the ongoing costs related to new development, such as fire protection, police protection and waste management. Impact fees are mechanism whereby this occurs. Several years ago the federal government participated in various infrastructure projects on a local level throughout the country. But as federal dollars dried up, the cost to fund these projects fell entirely on local government. Thus, municipalities established impact fees to provide a source of revenue to fund future development.