(A) Revenues from all development impact fees must be maintained in one or more interest-bearing accounts. Accounting records must be maintained for each category of system improvements and the service area in which the fees are collected. Interest earned on development impact fees must be considered funds of the account on which it is earned, and must be subject to all restrictions placed on the use of impact fees pursuant to the provisions of this article.

(B) Expenditures of development impact fees must be made only for the category of system improvements and within or for the benefit of the service area for which the impact fee was imposed as shown by the capital improvements plan and as authorized in this article. Impact fees may not be used for:

Terms Used In South Carolina Code 6-1-1010

  • Capital improvements: means improvements with a useful life of five years or more, by new construction or other action, which increase or increased the service capacity of a public facility. See South Carolina Code 6-1-920
  • Development: means construction or installation of a new building or structure, or a change in use of a building or structure, any of which creates additional demand and need for public facilities. See South Carolina Code 6-1-920
  • impact fee: means a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements. See South Carolina Code 6-1-920
  • Service area: means , based on sound planning or engineering principles, or both, a defined geographic area in which specific public facilities provide service to development within the area defined. See South Carolina Code 6-1-920
  • System improvement costs: means costs incurred for construction or reconstruction of system improvements, including design, acquisition, engineering, and other costs attributable to the improvements, and also including the costs of providing additional public facilities needed to serve new growth and development. See South Carolina Code 6-1-920
  • System improvements: means capital improvements to public facilities which are designed to provide service to a service area. See South Carolina Code 6-1-920

(1) a purpose other than system improvement costs to create additional improvements to serve new growth;

(2) a category of system improvements other than that for which they were collected; or

(3) the benefit of service areas other than the area for which they were imposed.

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