House passes moratorium on school impact fees, allows Park City to continue collections

The Utah House of Representatives passed Second Substitute House Bill 32 on Feb. 22, 1995, placing a moratorium on school impact fees until May 1, 1996, and instructing the Revenue and Taxation interim committee to study the policy during the interim.

Sponsor Representative Kevin S. Garn told the House the moratorium provides the legislature time to examine the relationship of impact fees to capital-outlay equalization, affordable housing, and alternatives for high-growth districts. "This bill . . . places a moratorium on school impact fees, and that moratorium goes until May 1 of 1996," Garn said, explaining that only districts already imposing fees (he named Park City School District) may continue to collect through that date.

Debate focused on timing and budgetary alignment. Some members questioned why May 1, 1996, rather than the more intuitive fiscal-year date of June 30, 1996, was chosen, noting district budgeting cycles. Garn and other supporters said May 1 was chosen so there would be no statutory gap and to align with the legislature's calendar for the following session. Garn said the Park City superintendent supported the bill and that collected impact-fee revenues have been placed in savings pending legislative action.

Lawmakers also discussed equity and the possible effects on affordable housing and capital outlay equalization if impact fees proliferate. Representative (unnamed) and other supporters urged passage so the interim committee could craft alternatives. The House recorded and announced the bill's passage and will transmit it to the Senate for consideration.

Next steps: Revenue and Taxation committee will study impact-fee relationships and present recommendations during the 1995 interim; sponsors and members indicated they will monitor fiscal-year and local-budget implications.