Impact Fees Frequently Asked Questions:

What are impact fees?

Impact fees are one-time fees that are paid to the City by developers/individuals who construct new housing, commercial/retail, office or industrial buildings in Salt Lake City. Impact fees are used to help cover growth-driven costs of providing public services to residents, including fire and police department services, and maintaining parks and roads.

Why should I care about impact fees?

Impact fees are used to help pay for City improvements all residents enjoy, including streets, parks, public safety and more.

What is the moratorium I’ve been hearing about?

A moratorium is an official period of waiting. The Council adopted an impact fee moratorium in October 2015, meaning the City temporarily halted collection of impact fees. The Council recently extended that moratorium until new fees go into effect, which will likely be Spring 2017.  The exact date is 90 days after the exact date of adoption (state law).

What is the purpose of the moratorium on impact fees?

The moratorium was originally adopted to give the City time to research impact fees it charges developers and improve plans for spending those impact fees. During that time a consultant prepared an extensive report that included recommendations about impact fees. The Council received the report and recommendations only two weeks before the moratorium expired, so the Council extended the moratorium through Spring 2017 in order to review the report and recommendations thoroughly before taking action.

What happens now?

The Council will hold public hearings on Tuesday, November 15 and Tuesday, December 6 before adopting an official impact fees plan. The moratorium will end 90 days after the fees are enacted, which means starting in Spring 2017, developers will once again be required to pay impact fees to the City for new development.

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