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Committee backs bill to clarify impact-fee spending and service areas
Summary
The Senate Revenue and Taxation Committee voted unanimously Feb. 13 to recommend Senate Bill 245, an amendment clarifying that municipal impact fees may only be spent on improvements identified in the impact-fee facilities plan in effect when fees were collected and requiring service areas be geographically defined.
Senate Bill 245, which clarifies how municipalities may spend impact fees and tightens service-area definitions, won a unanimous committee recommendation Feb. 13.
Senator Musselman, sponsor of the bill, told the committee a recent district court ruling found ambiguity in state law about whether impact fee expenditures must be tied to the facilities plan in effect when fees were collected. "The court essentially said the legislature did not clearly limit expenditures to the plan in effect at the time of collection," he said, and the bill "aligns our…
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