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Committee hears bill to cap some impact-fee uses and tie fee growth to an inflation index; cities urge no-pass
Summary
Sen. Greg Hertz told the House Local Government Committee that Senate Bill 133 would remove a 5% administrative allowance on impact fees, narrow allowable impact-fee uses, and tie future fee increases to the Producer Price Index by commodity.
Sen. Greg Hertz, sponsor of Senate Bill 133, told the House Local Government Committee the measure would limit the uses of impact fees, remove a 5% administrative allowance, and set an inflation adjustment tied to the Producer Price Index (PPI) by commodity. “On page 1, line 24, it eliminates the allowance to have a, impact 5% administration fee,” Hertz said. He said the bill also narrows the statutory list of public facilities that impact fees may fund and applies an inflation adjustment using the PPI.
Proponents from the building industry argued the changes would provide predictability. Ashley Martinez, speaking for the Montana Building Industry Association, testified that capping fee growth to the…
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