Builders in the Town of San Tan Valley will owe development impact fees starting Dec. 21, but for nearly every kind of project the bill comes to nothing.
The town council adopted the fees on Oct. 7, SanTanValley.com reported Saturday. They pay toward two things growth puts pressure on, roads plus parks and recreation. A public hearing was held Sept. 2. They apply only inside town limits, not in unincorporated neighborhoods outside the town line.
Why the total is zero
The town charges a 5% sales tax on construction contracting, set July 1, compared with 2.25% for most other businesses. Under state law, the town has to credit that gap against the impact fee. At the 5% rate, the credit is large enough to erase the fee for single-family homes, apartments, retail, offices and hotels, according to the report.
According to the report, Town Manager Brent Billingsley described the result to council members as essentially zero for most types of construction.
The single exception is the category the fee schedule labels "Mobile Home / Other," where each unit would still owe $2,469 once the credit is applied: $2,336 for streets and $133 for parks.
Without any credit, the fee study supports a charge of up to $6,167 on a new single-family home.
