Like the transfer tax, an initial proposed amount must be approved at a town meeting, submitted as a home rule petition to the legislature and signed by the governor. A surcharge must also be approved by a vote of the local electorate. Land Banks funded by property tax surcharges have been approved for the town of Marion and the Cape Cod Land Bank. Exactions on Proposed Developments Municipal officials can establish a program of impact fees or negotiate with developers for exactions or payments to mitigate some impacts of their development upon the town. In a booming real estate market, developers are willing to mitigate wider impacts than they are legally required to alleviate.
Exactions are tricky to negotiate successfully.
When used appropriately, exactions on new developments can help offset the loss of open space to a community. To date, Berlin has preserved 500 acres using these funds. Town officials also credit the fact that the town s open space plan had been recently updated and was therefore able to provide guidance in selecting land to protect.