11-36a-202.  Prohibitions on impact fees.

(1)  A local political subdivision or private entity may not:

Terms Used In Utah Code 11-36a-202

  • Charter school: includes :
(a) an operating charter school;
(b) an applicant for a charter school whose application has been approved by a charter school authorizer as provided in 6; and
(c) an entity that is working on behalf of a charter school or approved charter applicant to develop or construct a charter school building. See Utah Code 11-36a-102
  • Development activity: means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land that creates additional demand and need for public facilities. See Utah Code 11-36a-102
  • Development approval: means :
    (a) except as provided in Subsection (4)(b), any written authorization from a local political subdivision that authorizes the commencement of development activity;
    (b) development activity, for a public entity that may develop without written authorization from a local political subdivision;
    (c) a written authorization from a public water supplier, as defined in Section 73-1-4, or a private water company:
    (i) to reserve or provide:
    (A) a water right;
    (B) a system capacity; or
    (C) a distribution facility; or
    (ii) to deliver for a development activity:
    (A) culinary water; or
    (B) irrigation water; or
    (d) a written authorization from a sanitary sewer authority, as defined in Section 10-9a-103:
    (i) to reserve or provide:
    (A) sewer collection capacity; or
    (B) treatment capacity; or
    (ii) to provide sewer service for a development activity. See Utah Code 11-36a-102
  • Highway: includes :Utah Code 68-3-12.5
  • Impact fee: means a payment of money imposed upon new development activity as a condition of development approval to mitigate the impact of the new development on public infrastructure. See Utah Code 11-36a-102
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Land: includes :Utah Code 68-3-12.5
  • Level of service: means the defined performance standard or unit of demand for each capital component of a public facility within a service area. See Utah Code 11-36a-102
  • Local political subdivision: means a county, a municipality, a special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, a special service district under Title 17D, Chapter 1, Special Service District Act, or the Point of the Mountain State Land Authority, created in Section 11-59-201. See Utah Code 11-36a-102
  • Private entity: means an entity in private ownership with at least 100 individual shareholders, customers, or connections, that is located in a first, second, third, or fourth class county and provides water to an applicant for development approval who is required to obtain water from the private entity either as a:
    (a) specific condition of development approval by a local political subdivision acting pursuant to a prior agreement, whether written or unwritten, with the private entity; or
    (b) functional condition of development approval because the private entity:
    (i) has no reasonably equivalent competition in the immediate market; and
    (ii) is the only realistic source of water for the applicant's development. See Utah Code 11-36a-102
  • Proportionate share: means the cost of public facility improvements that are roughly proportionate and reasonably related to the service demands and needs of any development activity. See Utah Code 11-36a-102
  • Public facilities: means only the following impact fee facilities that have a life expectancy of 10 or more years and are owned or operated by or on behalf of a local political subdivision or private entity:
    (a) water rights and water supply, treatment, storage, and distribution facilities;
    (b) wastewater collection and treatment facilities;
    (c) storm water, drainage, and flood control facilities;
    (d) municipal power facilities;
    (e) roadway facilities;
    (f) parks, recreation facilities, open space, and trails;
    (g) public safety facilities;
    (h) environmental mitigation as provided in Section 11-36a-205; or
    (i) municipal natural gas facilities. See Utah Code 11-36a-102
  • Public safety facility: means :
    (i) a building constructed or leased to house police, fire, or other public safety entities; or
    (ii) a fire suppression vehicle costing in excess of $500,000. See Utah Code 11-36a-102
  • Road: includes :Utah Code 68-3-12.5
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • System improvements: means :
    (i) existing public facilities that are:
    (A) identified in the impact fee analysis under Section 11-36a-304; and
    (B) designed to provide services to service areas within the community at large; and
    (ii) future public facilities identified in the impact fee analysis under Section 11-36a-304 that are intended to provide services to service areas within the community at large. See Utah Code 11-36a-102
    (a)  impose an impact fee to:

    (i)  cure deficiencies in a public facility serving existing development;

    (ii)  raise the established level of service of a public facility serving existing development; or

    (iii)  recoup more than the local political subdivision’s or private entity’s costs actually incurred for excess capacity in an existing system improvement;

    (b)  delay the construction of a school or charter school because of a dispute with the school or charter school over impact fees; or

    (c)  impose or charge any other fees as a condition of development approval unless those fees are a reasonable charge for the service provided.
  • (2) 

    (a)  Notwithstanding any other provision of this chapter, a political subdivision or private entity may not impose an impact fee:

    (i)  on residential components of development to pay for a public safety facility that is a fire suppression vehicle;

    (ii)  on a school district or charter school for a park, recreation facility, open space, or trail;

    (iii)  on a school district or charter school unless:

    (A)  the development resulting from the school district’s or charter school’s development activity directly results in a need for additional system improvements for which the impact fee is imposed; and

    (B)  the impact fee is calculated to cover only the school district’s or charter school’s proportionate share of the cost of those additional system improvements;

    (iv)  to the extent that the impact fee includes a component for a law enforcement facility, on development activity for:

    (A)  the Utah National Guard;

    (B)  the Utah Highway Patrol; or

    (C)  a state institution of higher education that has its own police force;

    (v)  on development activity on fair park land, as defined in Section 11-68-101; or

    (vi)  on development activity that consists of the construction of an internal accessory dwelling unit, as defined in Section 10-9a-530, within an existing primary dwelling.

    (b) 

    (i)  Notwithstanding any other provision of this chapter, a political subdivision or private entity may not impose an impact fee on development activity that consists of the construction of a school, whether by a school district or a charter school, if:

    (A)  the school is intended to replace another school, whether on the same or a different parcel;

    (B)  the new school creates no greater demand or need for public facilities than the school or school facilities, including any portable or modular classrooms that are on the site of the replaced school at the time that the new school is proposed; and

    (C)  the new school and the school being replaced are both within the boundary of the local political subdivision or the jurisdiction of the private entity.

    (ii)  If the imposition of an impact fee on a new school is not prohibited under Subsection (2)(b)(i) because the new school creates a greater demand or need for public facilities than the school being replaced, the impact fee shall be based only on the demand or need that the new school creates for public facilities that exceeds the demand or need that the school being replaced creates for those public facilities.

    (c)  Notwithstanding any other provision of this chapter, a political subdivision or private entity may impose an impact fee for a road facility on the state only if and to the extent that:

    (i)  the state’s development causes an impact on the road facility; and

    (ii)  the portion of the road facility related to an impact fee is not funded by the state or by the federal government.

    (3)  Notwithstanding any other provision of this chapter, a local political subdivision may impose and collect impact fees on behalf of a school district if authorized by Section 11-36a-206.

    Amended by Chapter 502, 2023 General Session