TX SB2427

Redefines "impact fee" to cover only actual costs of labor (including surveyors, engineers, and similar professionals) and materials for capital improvements necessitated by new development, removing language allowing fees for general revenue generation or recoupment

Eliminates land acquisition costs from allowable impact fee expenditures, including land purchases, court awards, attorney's fees, and expert witness fees

Removes several exemptions from the impact fee definition, including dedications of land for public parks, rights-of-way construction, lot/acreage trust fund fees for reimbursing developers, and pro rata fees for water/sewer line extensions

Requires that impact fees used to finance bonds, pledge as debt security, or collect in areas without current services must be specifically tied to labor and material costs for capital improvements identified in the capital improvements plan

Applies only to impact fees enacted or imposed on or after the effective date; takes effect immediately with two-thirds legislative vote or September 1, 2025