Impact Fee Limit Amendments

6
11-36a-202
0
Impact Fee Limit Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Thomas W. Peterson
Senate Sponsor:
LONG TITLE
General Description:
This bill limits the impact fee amount a political subdivision may impose on a development
activity for a single public facility type.
Highlighted Provisions:
This bill:
prohibits a political subdivision from imposing an impact fee on a development activity if
the impact fee is more than $50,000 for a single public facility type.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
11-36a-202
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
11-36a-202
is amended to read:
11-36a-202
. Prohibitions on impact fees.
(1)
A local political subdivision or private entity may not:
(a)
impose an impact fee to:
(i)
cure deficiencies in a public facility serving existing development;
(ii)
raise the established level of service of a public facility serving existing
development; or
(iii)
recoup more than the local political subdivision's or private entity's costs actually
incurred for excess capacity in an existing system improvement;
(b)
delay the construction of a school or charter school because of a dispute with the
school or charter school over impact fees; or
(c)
impose or charge any other fees as a condition of development approval unless those
fees are a reasonable charge for the service provided.
(2)
(a)
Notwithstanding any other provision of this chapter, a political subdivision or
private entity may not impose an impact fee:
(i)
on residential components of development to pay for a public safety facility that is
a fire suppression vehicle;
(ii)
on a school district or charter school for a park, recreation facility, open space, or
trail;
(iii)
on a school district or charter school unless:
(A)
the development resulting from the school district's or charter school's
development activity directly results in a need for additional system
improvements for which the impact fee is imposed; and
(B)
the impact fee is calculated to cover only the school district's or charter
school's proportionate share of the cost of those additional system
improvements;
(iv)
to the extent that the impact fee includes a component for a law enforcement
facility, on development activity for:
(A)
the Utah National Guard;
(B)
the Utah Highway Patrol; or
(C)
an institution of higher education or private postsecondary educational
institution, as defined in Section
53H-1-101
, that has a police force;
(v)
on development activity on state-owned land, as defined in Section
11-70-101
;
or
(vi)
on development activity that consists of the construction of an internal accessory
dwelling unit, as defined in Section
10-21-303
, within an existing primary
dwelling
.
; or
(vii)
on a development activity if the impact fee is more than $50,000 for a single
public facility type.
(b)
(i)
Notwithstanding any other provision of this chapter, a political subdivision or
private entity may not impose an impact fee on development activity that consists
of the construction of a school, whether by a school district or a charter school, if:
(A)
the school is intended to replace another school, whether on the same or a
different parcel;
(B)
the new school creates no greater demand or need for public facilities than the
school or school facilities, including any portable or modular classrooms that
are on the site of the replaced school at the time that the new school is
proposed; and
(C)
the new school and the school being replaced are both within the boundary of
the local political subdivision or the jurisdiction of the private entity.
(ii)
If the imposition of an impact fee on a new school is not prohibited under
Subsection
(2)(b)(i)
because the new school creates a greater demand or need for
public facilities than the school being replaced, the impact fee shall be based only
on the demand or need that the new school creates for public facilities that
exceeds the demand or need that the school being replaced creates for those public
facilities.
(c)
Notwithstanding any other provision of this chapter, a political subdivision or private
entity may impose an impact fee for a road facility on the state only if and to the
extent that:
(i)
the state's development causes an impact on the road facility; and
(ii)
the portion of the road facility related to an impact fee is not funded by the state
or by the federal government.
(3)
Notwithstanding any other provision of this chapter, a local political subdivision may
impose and collect impact fees on behalf of a school district if authorized by Section
11-36a-206
.
Section 2.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-16-26 11:42 AM