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When will the developer pay an impact fee?


  • Leon Taylor

    (Dillard University)


Under court rulings, the jurisdiction can require the developer to bear only those public-sector costs that relate reasonably to his project. To avoid a lawsuit by the developer over cost estimates, planners can offer him his choice of sets of conditions that would attach to land-use permits. The developer will choose to pay an impact fee unless he does not value infrastructure and unless he expects more accurate information later about the development costs generated by his project.

Suggested Citation

  • Leon Taylor, 1998. "When will the developer pay an impact fee?," Public Economics 9810004, EconWPA, revised 19 Apr 2003.
  • Handle: RePEc:wpa:wuwppe:9810004
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    References listed on IDEAS

    1. Robert W. Helsley & William C. Strange, 1997. "Limited Developers," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 329-348, May.
    2. Leon Taylor, 1991. "Deceptive Developers, Competitive Zoning Boards, And The Asymmetry Of Information," The Review of Regional Studies, Southern Regional Science Association, vol. 21(3), pages 261-275, Fall.
    3. Leon Taylor, 1998. "Land-use agreements when the developer is not sure of infrastructure costs," Public Economics 9810005, EconWPA, revised 19 Apr 2003.
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    More about this item


    impact fees; infrastructure;

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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