AL HB456

Impact fees may be imposed by Madison County Commission (outside municipalities) or municipalities (within corporate limits) on new development to offset governmental infrastructure costs for storm water, roads, bridges, law enforcement, fire protection, emergency services, parks, schools, and facility maintenance.

Impact fees are capped at one percent of the estimated fair and reasonable market value of new development after completion, based on building permit value plus land value or developer-submitted appraisals.

Impact fees may be collected at time of property transfer, water/sewer system connection, building permit issuance, or certificate of occupancy, and constitute a lien on the property.

Political subdivisions must hold a public hearing with two weeks' notice before adopting impact fees and must make a specific finding that fees benefit the new development.

Collected impact fees must be used only for governmental infrastructure and expended within five years of collection; unexpended fees after five years (except for Act of God or litigation delays) must be refunded to developers.