IV. Other Charges

• Library: Municipal Law Deskbook (ABA) (2015 Ed.)

IV. OTHER CHARGES

Some local government charges do not fit neatly in either the tax or the fee category.

A. Utility Franchise Fees

Utility franchise fees are fees that a utility or similar operation is required to pay to a local government for the privilege of using the local government's streets and other public rights of way. Utilities and other operations that string cable from poles or bury cables, pipes, or other infrastructure in public streets are often required to pay franchise fees. Some characterize the franchise fee as a "rent" payment to the local government for the use of the local government's streets and other rights of way.

Franchise fees may require statutory authorization, and statutes may limit the amount of franchise fees that can be imposed, as well as the types of operations on which franchise fees may be imposed.

B. Impact Fees

Impact fees have a variety of other names, including development fees, mitigation fees, capital recovery fees, expansion fees, and system development charges.

Impact fees are typically imposed by a local government to recover costs related to new development. Impact fees vary in the time and amount of their imposition. Some impact fees are single fees that are imposed at the time building permits are granted and they pay or reimburse the local government for capital costs related to providing services to the property...