IPRWG memo 012401 - Laserfiche WebLink

Browse Search

30 5/ 26/ 99 2 . Impact Fees and Impact Taxes An impact fee requires the developer to pay a fee representing the prorated cost of providing community - wide and area - wide recreational facilities required by this new development . The use of the fee requires authority from the legislature through enabling legislation , and Orange County currently has the authority to levy such impact fees . Orange County also has a Public School Facilities Impact Fee , but no other impact fee is currently in use in the county for any other services . In using these fees , there must be exhibited a correlation showing the ( 1 ) actual need created by the impact of the development and ( 2 ) benefits provided to the particular subdivision . By contrast , an impact tax allows for recognition that all impacts are not equal . Impact taxes may be assessed in graduated levels and do not require the " one size fits all " regressive nature fee scale that exists for impact fees . Orange County has , in previous years , sought impact tax legislation from the State to provide for possible reassessment of the Public School Impact Fee program . C . Current Status of Payment- in - Lieu Throughout the County Methods of assessing a development 's recreation impact vary across the different jurisdictions within Orange County . Appendix G indicates the method by which Orange County and Carrboro calculate their payment required for the payment - in - lieu program . Orange County also has special legislation which allows payments to be collected and spent on a " district " basis . Instead of using a set schedule of payments , Chapel Hill negotiates based on individual development proposals while Hillsborough seeks dedication of land instead of payments . The appendix also shows the efforts of other selected jurisdictions throughout the country in acquiring land for recreation and open space needs . In terms of the reality of the programs , in Carrboro , many developments choose to provide private recreation facilities rather than payment - in4eu . Carrboro has collected $ 453 , 000 to date . Both Chapel Hill and Hillsborough do not have detailed central records of the results of payments or individually negotiated fees and land donations . Orange County has required payments since 1988 , and has accumulated these payments in a fund totaling $ 488 , 000 . It is clear in a broad overview , however, that the current system of land acquisition has been insufficient to meet citizens ' needs . Several problems arise in assessing the current adequacy of our parklands and