[Villages Kahuna]

I don't know which thread you were reading, so I don't know the specific context of your question. But typically "impact fees" are negotiated between a developer and the governmental unit (village, town, county, etc.) where the development will be constructed. Typically, they are costs to do things like widen roads, build a fire station, build a new school, etc. The theory is that those types of things would be necessary to serve new residents before the tax revenues from the development began to flow to pay for those projects. The impact fees are paid to the governmental unit "in exchange" for their approval of the development plan, change zoning if needed, and agreement to issue the necessary building permits.

Accordingly, impact fees become a cost to the developer which he must consider when establishing the prices for the buildings he intends to build and sell. They are definitely not a cost for out-of-staters only.