Quote:
Originally Posted by golfing eagles
You constantly state that the "developer" should pay the impact fees----when in reality the developer will just pass the cost on to the buyer. You have stated that the developer won't be able to do that, but in this market he most certainly can.
If your argument was that the new home buyers should bear the impact fee because they are creating the cost, it would have a bit more merit. But then you'd have to change your tagline to "the new homeowner's sweetheart impact fee deal"
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Yes they'll pass that cost on to the buyer. Once. The impact fee is currently $900 per unit. If the impact fee becomes $1500, then the increase will be $600 additional.
So let's just say the impact fee goes up to $1500, and the buyer has to absorb the entire $1500 cost in the purchase price.
The home is still valuated and assessed however it always is, by the county for tax purposes. The homeowner pays the same amount they always pay - which is now less, because the county has reduced their total tax burden from the homeowner.
So let's just pretend - for fun - that the decrease in the tax burden ends up meaning the homeowner pays only $3000 per year in taxes instead of $3500 in taxes per year.
The homeowner, by paying $500/year less in taxes, will save more than what they spent on the impact fee, in their second year.
The longer they own the home, the less significance that extra $600 impact fee increase has.