The ability of Utah's local political subdivisions to charge impact fees is dramatically affected. Analyze the bill. Impact Fees Municipalities use impact fees to help ameliorate the cost of growth. Development changes the use of land by installing improvements on that land and it also creates demand for new offsite capital facilities, such as main roads, parks, and water systems. These offsite capital costs can be funded by impact fees.
Impact fees are different than exactions .
Exactions are requirements made of a developer related to onsite improvements in a subdivision or development area. While subdivisions need internal improvements such as local neighborhood roads and sewer mains these requirements are distinct from impact fees. Impact fees contribute to the base of large offsite capital costs of a municipality, such as sewer treatment plants. Utah Code Ann. One justification for impact fees is that growth requires new capital facilities which should be funded by the new residents or businesses.