§ 36-7-4-1321 — Fee schedule or formula; requirements; limitations

(a) An impact fee schedule or formula
described in section 1320 of this chapter shall be prepared so that the
impact fee resulting from the application of the schedule or formula to
a development meets the requirements of this section. However, this
section does not require that a particular methodology be used in
preparing the schedule or formula.
(b) As used in this section, "impact costs" means a reasonable
estimate, made at the time the impact fee is assessed, of the
proportionate share of the costs incurred or to be incurred by the unit
in providing infrastructure of the applicable type in the impact zone
that are necessary to provide the community level of service for the
development. The amount of impact costs may not include the costs of
infrastructure of the applicable type needed to raise the current level of
service in the impact zone to the community level of service in the
impact zone for development that is existing at the time the impact fee
is assessed.
(c) As used in this section, "nonlocal revenue" means a reasonable
estimate, made at the time the impact fee is assessed, of revenue that:
(1) will be received from any source (including but not limited to
state or federal grants) other than a local government source; and
(2) is to be used within the impact zone to defray the capital costs
of providing infrastructure of the applicable type.
(d) As used in this section, "impact deductions" means a reasonable
estimate, made at the time the impact fee is assessed, of the amounts
from the following sources that will be paid during the ten (10) year
period after assessment of the impact fee to defray the capital costs of
providing infrastructure of the applicable types to serve a development:
(1) Taxes levied by the unit or on behalf of the unit by an
applicable infrastructure agency that the fee payer and future
owners of the development will pay for use within the geographic
area of the unit.
(2) Charges and fees, other than fees paid by the fee payer under
this chapter, that are imposed by any of the following for use
within the geographic area of the unit:
(A) An applicable infrastructure agency.
(B) A governmental entity.
(C) A not-for-profit corporation created for governmental
purposes.
Charges and fees covered by this subdivision include tap and
availability charges paid for extension of services or the provision
of infrastructure to the development.
(e) An impact fee on a development may not exceed:
(1) impact costs; minus
(2) the sum of nonlocal revenues and impact deductions.

Legislative History

As added by P.L.221-1991, SEC.22.