Impact Fees: Public Loves ‘Em

An anonymous poster (and sorry, poster-named-Rick, but it doesn’t bug me if they’re anonymous) had this to say about my March 27 post “Developers 1 – Everyone Else, O” (see below): “Impact fees get no traction with the public because we know we pay TOO much already and GovCo makes too many bad decisions.”

Hate to break it to you, but a recent survey just released found overwhelming support for impact fees. Now, the fees may or may not make sound public policy – that’s a whole other question. But they’re enormously popular with the public.

The poll results, released Friday, were plastered all over the Observer’s front page. If you missed Saturday’s Observer, here’s a link.

It was taken by MarketWise, for Mecklenburg County’s School Building Solutions Committee, a.k.a. the Martin Committee, chaired by Republican former Gov. Jim Martin, who, before he was governor was a county commissioner, then a U.S. House representative. The survey was Feb. 21-March 17, and involved 623 phone interviews.

Respondents were asked about four possible alternative revenue sources, worded exactly this way: increasing local sales tax, increasing cigarette tax, a tax on the sale of land, charging impact fees to developers.

On page 30 of the PowerPoint presentation, you’ll find an interesting graph showing their replies: 79 percent of respondents who voted in last fall’s school bond referendum, and 76 of those who hadn’t voted, said they’d support impact fees.

The way it’s worded makes it sound as if developers paid the fees and didn’t pass the costs on to homebuyers, which is what’s more likely to happen, although not always. After all, to compete on price, developers sometimes will eat a percentage of the impact fee costs, or choose to lower costs in some other way.

Anyone who isn’t planning on buying a new house is going to think impact fees are a great idea, and a sales tax – which everyone would pay – is a crummy idea. The poll results show exactly that: 25 percent of voters and 23 percent of nonvoters liked the sales tax idea. The tax on the sale of land (also known as a real estate transfer tax) got support from 39 percent of voters, 36 percent of nonvoters, and the increase in cigarette taxes got 76 percent support among voters and 79 percent support among nonvoters.

Reality checks: The cigarette tax is a state tax, not locally adopted. All three other local option taxes require the N.C. General Assembly to give its blessing.

If you’re among the many who think impact fees are a good idea, don’t be beating up on your school board members. They have nothing to do with impact fees. They can’t levy any taxes at all.

Find your state representatives in the N.C. House and N.C. Senate (Here’s a link to help you find your representatives. You’ll need your Zip Code-plus-four) and beat up on them. THEN call Charlotte City Council members and Mecklenburg County commissioners . They’re the ones who’d have to adopt the fees if the state allowed it. And they’d surely have to lobby the state, too, just for permission.

And if you don’t like impact fees, tell them that, too. I’d rather they be listening to the whole realm of public opinion than just to the developers.