UT SB0245

Service areas for impact fees may not include an entire local political subdivision or entire area served by a private entity, effective May 6, 2026

Impact fee facilities plans must now designate a service area for each impact fee and demonstrate the geographic area is necessary based on specific planning or engineering principles

Local political subdivisions must establish separate interest-bearing ledger accounts for each service area and each type of public facility for which impact fees are collected

Impact fee expenditures are restricted to system improvements within the specific service area where the fee was collected, not just for the same public facility type

Effective date: May 6, 2026