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Commission raises adequate facilities tax after broad debate; phased effective date adopted
Summary
After extended debate and multiple amendments, commissioners approved increasing the adequate facilities tax on new nonresidential development to help fund capital projects countywide, with phased effective dates and an allocation framework for capital projects including ambulance and fire apparatus.
Williamson County commissioners adopted a late-filed resolution to raise the adequate facilities tax (AFT) on new nonresidential development countywide after an extended public and internal debate.
Sponsors described the fee as a one-time permitting charge developers pay at permitting; proponents said a higher AFT would provide a stable revenue source for county capital needs without raising property taxes. Opponents expressed concern about placing another cost on builders and how incorporated municipalities would be affected.
The adopted amendment phased the increase: a $1 per square foot fee effective Jan. 1, 2026, rising to $2 per square foot on April 1, 2026 (dates and phasing adopted by amendment). Commissioners also amended distribution language to allow county commission oversight of capital allocations; the final amendment broadened eligible uses so revenues would support county capital projects, with an initial focus on ambulance and fire apparatus but not limited to those categories.
Commissioners cited neighboring counties’ approaches when considering competitiveness for development, and several public speakers — including a developer and business representatives — said modest per-square-foot fees are unlikely to deter projects. County finance staff and the budget committee provided modeling that estimated increased collections over a multi‑year horizon.
The resolution passed following amendments with a recorded vote of 19 yes and 3 no.
