Impact Fees affecting land Owners and Consumers

The way Ohio has written the state law on impact fees they are almost impossible to put on developement but the fee should be charged on a per homesite basis not value of the home.

Oh I love this issue, it rings true from sea to shining sea all across America. 

Impact Fees are "taxation without representation" and fly in the face of our nation's history.  Boston Harbor would be full of tea if we really stopped to think about this.

The person paying an impact fee, the homebuyer, is being taxed without the right to vote or even know where that tax is going.  It's become the easiest way to raise cash for a city or town nationwide without having any accountability.  Do you know why it works?  Because the people living in a community are only too happy to pound the guy that doesn't live there yet. 

I'd love to see impact fees banned!  They adversely raise the cost of homeownership and the truth is that the government entity that gets the cash now has no reason to be frugle. 

Dave, great post by the way.  I'll be curious to see if all these real estate professionals who spend thousands of hours posting about protecting their industry and their commissions will care about this tax .

Perhaps NH has to revisit the question of an income tax!  I know those are two words everyone hates.  This year is going to be a very interesting.  NH must come up with the definition of what constitutes an "adequate education" by July.  One way or the other, the legislature seems to want to put some sort of surcharge on real estate.  This year there is proposed legislation to increase recording FEES to fund environmental programs -- while we all want to preserve the environment, should it be done on the backs of those who purchase homes.  Aren't we fooling oureselves calling these various surcharges FEES.  Is the allocation of FEES fair?

In NH we are losing population to other states. NH has the second highest property taxes.  It makes it very difficult for many people to buy and/or maintain their homes.  It seems that all of these "fees" are another word for "tax."  As you point out these fees/taxes are enacted without any representation or right to vote.  A very interesting question you pose.

Though I understand the impact fee reasoning, it is tough on that family that is not a developer.  The first one in my town ended up in the first lawsuit.  A mom had subdivided her large parcel to her daughter who built a house.  They built on it although they were living with the mom already so the kids were already in the schools.  They won the suit because the town felt it would cost more to fight then give in. 

Dave, so many NH blogs this week discussing tax/fees increases. I'm not sure how long we can keep the income tax monster away without adding fees somewhere. I feel for our seniors being hit so hard with taxes; the income tax seems much more fair. Altho nobody wants to hear it!!!

Sue 

Great post Dave.