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Impact fees make a lot of sense for area

| April 9, 2008 9:00 PM

I am certainly no liberal or Democrat, however, I disagree with Terry Lamb's view of impact fees.

Bonner County's impact fee plan is only now being considered. In most cases, impact fees are not placed on purchases of lots or raw land but when actual new construction begins and building permits are issued.

While scarcity of housing does directly drive market value or what a buyer will pay, actual construction cost does not.

It is entirely possible to have a market value far greater or far less than actual construction cost. Market value is determined by comparative sales and what a property actually sells for. Idaho law requires tax assessments to be based on market value not construction costs.

Currently all costs allowed within the county's budget which may support services required by new development become current property owners tax burden. Developers and newcomers, until their property goes on the tax rolls, do not pay for the services and problems they cause. Often developers are from other states, reap their profits at our expense, and get away paying little or nothing.

Impact fees solve this by requiring developers and newcomers to pay up front for increasing services thereby alleviating unfair tax burden to current property owners. Hopefully if significant enough would also help slow development which is “Californicating” and ruining Bonner County.

A current shortcoming of impact fees is that Idaho law does not allow school districts which are certainly impacted by new development and the greatest potential tax burden and drain on property owners to place them on new construction.

PHIL POUTR…

Cocolalla