Establishing an Impact Fee

Utah Code tit. 11, ch. 11-36a, pt. 11-36a-P3

in effect

Utah Code § 11-36a-301 Impact fee facilities plan.

11-36a-301. Impact fee facilities plan. (1) Before imposing an impact fee, each local political subdivision or private entity shall, except as provided in Subsection (3), prepare an impact fee facilities plan to determine the public facilities required to serve development resulting from new development activity. (2) A municipality or county need not prepare a separate impact fee facilities plan if the general plan required by Section 10-20-401 or 17-79-401, respectively, contains the elements required by Section 11-36a-302. (3) A local political subdivision or a private entity with a population, or serving a population, of less than 5,000 as of the last federal census that charges impact fees of less than $250,000 annually need not comply with the impact fee facilities plan requirements of this part, but shall ensure that: (a) the impact fees that the local political subdivision or private entity imposes are based upon a reasonable plan that otherwise complies with the common law and this chapter; and (b) each applicable notice required by this chapter is given. Amended by Chapter 15, 2025 Special Session 1

Utah Code § 11-36a-302 Impact fee facilities plan requirements -- Limitations -- School district or charter school.

11-36a-302. Impact fee facilities plan requirements -- Limitations -- School district or charter school. (1) (a) An impact fee facilities plan shall: (i) identify the existing level of service; (ii) subject to Subsection (1)(c), establish a proposed level of service; (iii) identify any excess capacity to accommodate future growth at the proposed level of service; (iv) identify demands placed upon existing public facilities by new development activity at the proposed level of service; and (v) identify the means by which the political subdivision or private entity will meet those growth demands. (b) A proposed level of service may diminish or equal the existing level of service. (c) A proposed level of service may: (i) exceed the existing level of service if, independent of the use of impact fees, the political subdivision or private entity provides, implements, and maintains the means to increase the existing level of service for existing demand within six years of the date on which new growth is charged for the proposed level of service; or (ii) establish a new public facility if, independent of the use of impact fees, the political subdivision or private entity provides, implements, and maintains the means to increase the existing level of service for existing demand within six years of the date on which new growth is charged for the proposed level of service. (2) In preparing an impact fee facilities plan, each local political subdivision shall generally consider all revenue sources to finance the impacts on system improvements, including: (a) grants; (b) bonds; (c) interfund loans; (d) impact fees; and (e) anticipated or accepted dedications of system improvements. (3) A local political subdivision or private entity may only impose impact fees on development activities when the local political subdivision's or private entity's plan for financing system improvements establishes that impact fees are necessary to maintain a proposed level of service that complies with Subsection (1)(b) or (c). (4) (a) Subject to Subsection (4)(c), the impact fee facilities plan shall include a public facility for which an impact fee may be charged or required for a school district or charter school if the local political subdivision is aware of the planned location of the school district facility or charter school: (i) through the planning process; or (ii) after receiving a written request from a school district or charter school that the public facility be included in the impact fee facilities plan. (b) If necessary, a local political subdivision or private entity shall amend the impact fee facilities plan to reflect a public facility described in Subsection (4)(a). (c) (i) In accordance with Sections 10-20-304 and 17-79-305, a local political subdivision may not require a school district or charter school to participate in the cost of any roadway or sidewalk. (ii) Notwithstanding Subsection (4)(c)(i), if a school district or charter school agrees to build a roadway or sidewalk, the roadway or sidewalk shall be included in the impact fee facilities plan if the local jurisdiction has an impact fee facilities plan for roads and sidewalks. Amended by Chapter 15, 2025 Special Session 1

Utah Code § 11-36a-303 Impact fee analysis.

11-36a-303. Impact fee analysis. (1) Subject to the notice requirements of Section 11-36a-504, each local political subdivision or private entity intending to impose an impact fee shall prepare a written analysis of each impact fee. (2) Each local political subdivision or private entity that prepares an impact fee analysis under Subsection (1) shall also prepare a summary of the impact fee analysis designed to be understood by a lay person. Enacted by Chapter 47, 2011 General Session

Utah Code § 11-36a-304 Impact fee analysis requirements.

11-36a-304. Impact fee analysis requirements. (1) An impact fee analysis shall: (a) identify the anticipated impact on or consumption of any existing capacity of a public facility by the anticipated development activity; (b) identify the anticipated impact on system improvements required by the anticipated development activity to maintain the established level of service for each public facility; (c) subject to Subsection (2), demonstrate how the anticipated impacts described in Subsections (1)(a) and (b) are reasonably related to the anticipated development activity; (d) estimate the proportionate share of: (i) the costs for existing capacity that will be recouped; and (ii) the costs of impacts on system improvements that are reasonably related to the new development activity; and (e) based on the requirements of this chapter, identify how the impact fee was calculated. (2) In analyzing whether or not the proportionate share of the costs of public facilities are reasonably related to the new development activity, the local political subdivision or private entity, as the case may be, shall identify, if applicable: (a) the cost of each existing public facility that has excess capacity to serve the anticipated development resulting from the new development activity; (b) the cost of system improvements for each public facility; (c) other than impact fees, the manner of financing for each public facility, such as user charges, special assessments, bonded indebtedness, general taxes, or federal grants; (d) the relative extent to which development activity will contribute to financing the excess capacity of and system improvements for each existing public facility, by such means as user charges, special assessments, or payment from the proceeds of general taxes; (e) the relative extent to which development activity will contribute to the cost of existing public facilities and system improvements in the future; (f) the extent to which the development activity is entitled to a credit against impact fees because the development activity will dedicate system improvements or public facilities that will offset the demand for system improvements, inside or outside the proposed development; (g) extraordinary costs, if any, in servicing the newly developed properties; and (h) the time-price differential inherent in fair comparisons of amounts paid at different times. Enacted by Chapter 47, 2011 General Session

Utah Code § 11-36a-305 Calculating impact fees.

11-36a-305. Calculating impact fees. (1) In calculating an impact fee, a local political subdivision or private entity may include: (a) the construction contract price; (b) the cost of acquiring land, improvements, materials, and fixtures; (c) for services provided for and directly related to the construction of the system improvements, the cost for planning and surveying, and engineering fees; (d) for a political subdivision, debt service charges, if the political subdivision might use impact fees as a revenue stream to pay the principal and interest on bonds, notes, or other obligations issued to finance the costs of the system improvements; and (e) one or more expenses for overhead. (2) In calculating an impact fee, each local political subdivision or private entity shall base amounts calculated under Subsection (1) on realistic estimates, and the assumptions underlying those estimates shall be disclosed in the impact fee analysis. Amended by Chapter 35, 2021 General Session

Utah Code § 11-36a-306 Certification of impact fee analysis.

11-36a-306. Certification of impact fee analysis. (1) An impact fee facilities plan shall include a written certification from the person or entity that prepares the impact fee facilities plan that states the following: "I certify that the attached impact fee facilities plan: 1. includes only the costs of public facilities that are: a. allowed under the Impact Fees Act; and b. actually incurred; or c. projected to be incurred or encumbered within six years after the day on which each impact fee is paid; 2. does not include: a. costs of operation and maintenance of public facilities; or b. costs for qualifying public facilities that will raise the level of service for the facilities, through impact fees, above the level of service that is supported by existing residents; and 3. complies in each and every relevant respect with the Impact Fees Act." (2) An impact fee analysis shall include a written certification from the person or entity that prepares the impact fee analysis which states as follows: "I certify that the attached impact fee analysis: 1. includes only the costs of public facilities that are: a. allowed under the Impact Fees Act; and b. actually incurred; or c. projected to be incurred or encumbered within six years after the day on which each impact fee is paid; 2. does not include: a. costs of operation and maintenance of public facilities; or b. costs for qualifying public facilities that will raise the level of service for the facilities, through impact fees, above the level of service that is supported by existing residents; 3. offsets costs with grants or other alternate sources of payment; and 4. complies in each and every relevant respect with the Impact Fees Act." Amended by Chapter 35, 2021 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title11/Chapter36A/11-36a-P3.html?v=C11-36a-P3_1800010118000101Fetched: 10/26/2026