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Lance in Buena Vista, CO0.002

David and Lisa, I've been following your discussion threads for months in preparation for starting my own house. You have both provided a wealth of information, insight, and inspiration. Thanks for all of the time and effort that you put into this forum.
Del in Norcross, GA

Try one of our new Construction Bargain Strategies for free. Coupon code: CBS. One strategy could save you $1,000 or $10,000 or maybe $50,000 when you build or remodel.


    1-2. Manage the impact fees. - Electronic Edition

    1-2. Manage the impact fees. - Electronic Edition
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     When you buy land, or when you take out permits to build on a lot, you learn that the local communities tack a fee onto the purchase to help pay for infrastructure already existing or planned in the community. It's an interesting taxation without representation for newcomers who couldn't vote against it. The fees can vary by several thousand dollars between neighboring communities. Shop for a combination of location and fees that suits you.

     Shelter editor Rodger Hardy of the Deseret Morning News told me that we have Proposition 13 to thank for the impact fees all of our municipalities are charging on new construction. California started it as a way to recover from their reduced property taxes, and now our state and many others are imitating it without reducing property taxes.

     The fees are a very substantial taxation without representation levied on you, the newcomer to a community. Currently a survey of communities in my state puts the average impact fee at $10,000 for a typical new home. There is a substantial variation between communities, as John and Jessica Norton learned when they owner-built. They called all the towns in their target area and chose the one with the lowest impact fee.

     Some communities will exempt you from paying an impact fee if you already own a home in town and thus pay taxes. Call city managers or planning departments to find out.

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