Construction fees in Utah
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.
Utah Code § 11-36a-101 et seq.
Guiding standard in the act: proportionate share; roughly proportionate; reasonably related. That phrase is the ceiling on what may be charged, and it is the cheapest argument a fee payer has.
Your fee stack in Utah
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 Utah says about your project
Utah's act already used the phrase "roughly proportionate" long before Sheetz made that test unavoidable nationwide.
Water and sewer districts are clearly subject to the act, which is not true in most states. That closes the gap where the biggest charges usually hide.
Only the actual cost of excess capacity may be recovered, not current replacement cost.
The preparer of the impact fee facilities plan must certify in writing that it complies with the act. Ask to see that certification.
What the fees may pay for
7 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 | Yes |
| Fire | Yes |
| Police | Yes |
| 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 | Not required |
| Level of service standards required | Not required |
Timing, credits, refunds and waivers
| Provision | What the act says |
|---|---|
| When the fee may be collected | any time |
| Recoupment of prior costs allowed | Yes |
| Waivers expressly authorized | affordable housing |
| Waived fees must be backfilled | yes |
| Notice before a new or increased fee | 2 weeks |
| Phase-in before a fee takes effect | 90 days |
| Spend-or-refund window | 6 years |
What to do next in Utah
- 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 6 years. Almost nobody claims these.
- Pay under protest if you intend to dispute anything at all. What that preserves.