What are Impact Fees & How does New Development pay for its Impacts?
One question many residents have is how does new development offset its impact on the community. As a note, projects are proposed, reviewed and approved through the County, you can see a detailed guide here: https://takomaparkmd.gov/public-notices/developing-land-in-montgomery-county-city-of-takoma-park-edition/
New construction and substantial renovation typically require the development to provide:
- A payment of impact fees for roads and schools and
- The provision of public benefits.
Public Benefits
Any large project proposed – evaluated based on the proposed building and the size of the property – is required to include public benefits, implemented through a points system developed by the County Planning Department. When public benefits are mandated, the process is known as the optional method of Development. This mandates the project provide a number of public benefits (the amount depends on the size of the project), such as sidewalks, public parks, and other community needs.
- A summary of this process and public benefits can be found here: https://montgomeryplanningboard.org/wp-content/uploads/2023/12/Attachment-A-Summary-of-Development.pdf
Impact Fees
Any new project would be assessed Impact Fees, known as Development Impact Taxes in Montgomery County. Development Impact Taxes are set by the Montgomery County Council and assessed on new residential and commercial buildings and additions to commercial buildings in the county to fund, in part, the improvements necessary to increase the transportation or public-school systems capacity, thereby allowing development to proceed.
In addition to Impact Taxes development may be assessed a Local Area Transportation Improvement Policy fee (LATIP) depending on the location. The County Department of Permitting Services is charged with collection of Development Impact Taxes.
- You can learn more about Impact Fees here: https://www.montgomerycountymd.gov/DPS/fees/Taxes.html
