Construction fees in Texas
This state has a general impact fee enabling act. Local governments here charge under a statewide statute, which means there are written limits on what can be charged, how it must be calculated and when it must be refunded.
Tex. Loc. Gov't Code ch. 395
Guiding standard in the act: necessitated by and attributable 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 Texas
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 Texas says about your project
Texas wrote the first general enabling act in the country, in 1987, and much of its language was copied into other states.
The platting lock is permanent: the schedule in effect at final subdivision approval is the ceiling for that subdivision, no matter when the houses actually go up. No other state goes that far.
Eligible facilities stop at roads, water, wastewater and drainage. No park, fire, police, library or school impact fees under chapter 395.
A city may skip the revenue credit calculation entirely by simply cutting the fee in half.
Transportation service areas may not exceed six miles.
What the fees may pay for
4 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 | Yes |
| Wastewater and sewer | Yes |
| Stormwater and drainage | Yes |
| Parks and recreation | Not listed |
| Fire | Not listed |
| Police | Not listed |
| Libraries | Not listed |
| Solid waste | Not listed |
| Schools | Not listed |
What the jurisdiction had to do first
These are the homework requirements in the act. Where one is required and missing, that is a procedural defect you can raise without a lawyer.
| Planning requirement | In the act |
|---|---|
| Written analysis required | Yes |
| Service areas required | Yes |
| List of projects required | Yes |
| Growth projections required | Yes |
| Level of service standards required | Not required |
Timing, credits, refunds and waivers
| Provision | What the act says |
|---|---|
| When the fee may be collected | building permit |
| Recoupment of prior costs allowed | Yes |
| Schedule locks in at platting | forever |
| Waivers expressly authorized | affordable housing |
| Waived fees must be backfilled | no |
| Advisory committee | 5 or more |
| Development industry representation | 40% |
| Notice before a new or increased fee | 30 days |
| Spend-or-refund window | 10 years |
| Required update frequency | 5 years |
| Administrative share allowed | study cost |
What to do next in Texas
- 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.
- Check what schedule was in effect when your plat was approved. Texas locks it in for forever. Read this before you delay platting.
- Calendar the refund date. Unspent fees here come back after 10 years. Almost nobody claims these.
- Pay under protest if you intend to dispute anything at all. What that preserves.