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SAHBA News

INSIDE TUCSON BUSINESS: Mon., April 6, 2009

Cost of new home includes almost 13% in fees, taxes

Impact fees and surcharges make up 12.8% of the sales price of a new home in the Tucson region, according to data compiled by the Southern Arizona Home Builders Association. The average total of impact fees and surcharges for a 2,100 square foot home was $27,587 last year. As of February, the median price for a new home was $214,364, according to John Strobeck, of Bright Future Business Consultants.

The impact fees and surcharges include the building permit, water meter, water system development, wastewater fee, Central Arizona Project replenishment, and impact fees for roads, parks, police and fire; plus state and local sales taxes.

The lowest fees and taxes in the region totaled $20,770 on a new home in unincorporated Pima County. Moving up from that, Sahuarita's fees and taxes total $24,098, Tucson's are $25,771, Marana totals $30,921 and the highest is Oro Valley, at $36,373.

“During this recession, government fees that raise costs on new homes have a negative, devastating impact on demand,” said Roger Yohem, vice president of SAHBA.