Some cities and towns experience sudden growth due to causes such as explosive natural resource development. This rapid, unforeseen growth challenges these cities and towns to meet the need for increased municipal services. Many times these impacts are unpredictable and the impacted municipalities cannot immediately afford the increased costs to enlarge their infrastructure and for expanding municipal services. This growth eventually generates increased property tax revenue but it is not immediate and impacted municipalities need a quicker revenue source. A local impact fee would fill that need for more readily available extra revenue. In the 63rd Legislature (2013 Session), House Bill No. 452 proposed a reasonable process allowing a local government the option to establish a local impact fee that could be imposed on overnight lodging facilities and campgrounds.
MLCT will support a locally created and imposed impact fee.