(A) The impact fee imposed upon a fee payor may not exceed a proportionate share of the costs incurred by the governmental entity in providing system improvements to serve the new development. The proportionate share is the cost attributable to the development after the governmental entity reduces the amount to be imposed by the following factors:

(1) appropriate credit, offset, or contribution of money, dedication of land, or construction of system improvements; and

Terms Used In South Carolina Code 6-1-990

  • 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
  • Fee payor: means the individual or legal entity that pays or is required to pay a development impact fee. See South Carolina Code 6-1-920
  • Governmental entity: means a county, as provided in Chapter 9 of Title 4, and a municipality, as defined in § 5-1-20. 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
  • Proportionate share: means that portion of the cost of system improvements determined pursuant to § 6-1-990 which reasonably relates to the service demands and needs of the project. 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 improvements: means capital improvements to public facilities which are designed to provide service to a service area. See South Carolina Code 6-1-920

(2) all other sources of funding the system improvements including funds obtained from economic development incentives or grants secured which are not required to be repaid.

(B) In determining the proportionate share of the cost of system improvements to be paid, the governmental entity imposing the impact fee must consider the:

(1) cost of existing system improvements resulting from new development within the service area or areas;

(2) means by which existing system improvements have been financed;

(3) extent to which the new development contributes to the cost of system improvements;

(4) extent to which the new development is required to contribute to the cost of existing system improvements in the future;

(5) extent to which the new development is required to provide system improvements, without charge to other properties within the service area or areas;

(6) time and price differentials inherent in a fair comparison of fees paid at different times; and

(7) availability of other sources of funding system improvements including, but not limited to, user charges, general tax levies, intergovernmental transfers, and special taxation.

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