Impact Fee Reform Re-emerges as Legislative Priority
Stan Barnes, Copper State Consulting
One of SAHBA’s top legislative priorities for the 2009 Session is Impact Fee Reforms. After many years of failed negotiations with the League of Cities and Towns and gubernatorial vetoes, SAHBA, along with a coalition of industry representatives, introduced House Bill 2259 sponsored by Representative Andy Biggs, District 22 - Gilbert.
HB 2259 essentially is the same bill that resulted from last year’s negotiations (SB 1403). It was introduced as a starting place; the coalition feels strongly that additional and more comprehensive reforms are needed.
The bill currently focuses on these reforms:
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To ensure construction growth is paying for itself, development impact fees must be used for the benefit of the same area within that the fee was assessed.
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In order to make certain growth pays its fair share, require a comparison of necessary public services between existing residents and new growth.
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Require local governments to forecast, rather than merely consider, the total contribution by development property owners towards the capital costs of necessary public services included in the development fee schedule. New growth should pay its fair share, but only once.
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Prohibit a local government from assessing a new impact fee or increasing the fee in any category for 24 months after approval of the project. (Local governments may continue to create new impact fee categories or increase the impact fee schedule for future projects. However, a specific project that already has been approved would have the impact fee “locked in” for a period of 24 months.)
This bill passed the Commerce and Rules Committee and was retained for a floor vote, as the focus of the entire legislature turned solely to the budget. That being said, there has not been the opportunity for discussion of additional reforms in HB 2259.
Instead, we have focused on the additional emergency reforms as a part of the budget solution.
The critical reforms we are pursuing are both long and short term in nature:
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A three-year moratorium on impact fees.
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Grandfathering all subdivisions approved by June 30, 2009 from new code adoptions mid-project.
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A three-year freeze at the current construction sales tax rate.
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Define “necessary public services” to prohibit cities from charging for non-essential services in the future.
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Define “level of service” to ensure growth pays its fair share and not more.
In recent weeks, SAHBA members have been called upon to reach out to legislators to emphasize the importance of these reforms. We may ask you to engage again as the right opportunity presents itself.
We have a long way to go with complex budget negotiations between the House, the Senate and the Governor’s office. We will continue to emphasize our need for economic relief and the jobs and tax revenue a healthy construction industry produces for state and local governments.
We acknowledge Senator Jonathan Paton for his leadership on this issue over many years and recognize Representatives Frank Antenori, David Gowan, David Stevens and Vic Williams for engaging in this issue and supporting impact fee reforms.
Details: Barnes at (602) 229-1010.