The use of impact fees provide a politically acceptable alternative to property tax increases. The use of impact fees avoids de facto moratoria on development that result from tax and debt limits on local government. Impact fee revenue requires proof of a connection between fee payment and infrastructure expenditure and thus avoids political exactions on developers. Impact fees allow local municipalities more control over growth. Because impact fees are based on costs of facility improvements and not ability to pay, they are regressive.
Impact fees increase the market price of new and exiting housing.
Impact fees may be used to further no-growth objectives. The administration of impact fees may be expensive. Conclusions Impact fees are useful because they allow local municipalities in Connecticut to exert more control over local development. In particular they allow local municipalities to mitigate the impact of development under existing zoning laws on property taxes without resorting to upzoning, which renders them liable to suit. Because enabling legislation does not mandate, but simply allows, local municipalities the right to enact impact fees, in is not inherently anti-development.