Construction fees in Alabama
No general act. One named county is authorized by a local act. Outside that county, whether a local government may charge an impact fee at all is an open question rather than a settled power.
Code of Alabama, § 45-2-243.80 et seq. (Baldwin County only)
Guiding standard in the act: necessitated by and attributable directly to. That phrase is the ceiling on what may be charged, and it is the cheapest argument a fee payer has.
Your fee stack in Alabama
Answer four things and get the list of every body that can bill this project, what each one is allowed to charge for, and the rights your state's law gives you before you pay.
What Alabama says about your project
There is no general Alabama enabling act. A local act reaches Baldwin County alone, and it caps the fee at 1% of the finished market value of the new development.
The Baldwin County act says a fee may be levied only once per service unit, and unspent fees must be refunded after five years.
Elsewhere in Alabama, treat any charge called an impact fee as a question for the city attorney, not a settled power.
What the fees may pay for
6 of 10 facility categories are eligible here. A charge for anything not on this list is resting on some other authority, and that is a fair question to ask.
| Facility type | Eligible for impact fees |
|---|---|
| Roads and transportation | Yes |
| Water facilities | Not listed |
| Wastewater and sewer | Not listed |
| Stormwater and drainage | Yes |
| Parks and recreation | Yes |
| Fire | Yes |
| Police | Yes |
| Libraries | Not listed |
| Solid waste | Not listed |
| Schools | Yes |
Timing, credits, refunds and waivers
| Provision | What the act says |
|---|---|
| When the fee may be collected | lot transfer, utility connection, building permit or certificate of occupancy |
| Waivers expressly authorized | credits by ordinance |
| Notice before a new or increased fee | 2 weeks |
| Phase-in before a fee takes effect | 2 weeks after hearing |
| Spend-or-refund window | 5 years |
What to do next in Alabama
- Confirm whether your parcel is in a city or unincorporated, then pull the taxing district list from the assessor's record. Why that list is the real fee list.
- Request the current adopted fee schedule and a written fee estimate for the address. The six-step sequence.
- Call each utility separately. Tap fees usually sit outside the act, and are often the largest line.
- If you are dedicating land or building improvements, request the credit in writing before assessment. How to ask.
- Calendar the refund date. Unspent fees here come back after 5 years. Almost nobody claims these.
- Pay under protest if you intend to dispute anything at all. What that preserves.