NEW
ENGLAN
D
U P D A T E
MARCH JLC 1997
Impact Fees:
Fair Fees or
Sneaky Taxes?
Impact fees — the real estate
transfer or permitting fees used
by many towns to fund development-
related and other
expenses — have been a concern
to the building industry
since their use began in the
1970s. However, what was a
back-burner issue for the construction
industry only five years
ago has lately emerged as a
prime regulatory and financial
issue, both nationally and in
New England.
In Massachusetts, the state
Home Builders Association
(HBA) stands ready to do legislative
and perhaps legal battle
with two towns and all of Cape
Cod over existing and proposed
real estate transfer fees. In
Connecticut, the HBA is challenging
the state's impact fee
mechanism,