Additonal
Information

Resources

Requirements and Restrictions | Impact Fee Standards | Definitions
Impact Regulations

The purpose of the Impact Fee Statute is to attempt to formalize the fee process to insure fair fees. The statute was initially created in response to various municipalities’ charging excessive arbitrary fees to new construction for the purpose of paying for services the entire community would benefit from. The state statutes define impact fees as “cash contributions, contributions of land or interest in land or interests in land or any other items of value that are imposed on a developer by a political subdivision.” It also limits the utilization of fees to certain public facilities.

Most costs associated with these fees are ultimately passed on to the residential, commercial or industrial buying or leasing consumer, which drives up the cost of housing and business through higher lot prices or higher rents. However, these impact fees are beneficial as they are applied to enhancements that benefit the entire community.

Requirements and Retrictions --
Back to Top
Political Subdivisions (County, City, Village or Town) must do the following prior to passing an impact fee ordinance:

--- Hold a public hearing

--- Conduct a “Public Facilities Needs Assessment. This would entail a detailed analysis of existing facilities and infrastructure, the estimated need, and the estimated cost for such new or improved facilities. Understand that improved facilities should not exceed the current level of service.

Impact Fee Standards -- Back to Top

--- The fees and facility being created or improved must have a direct correlation to the need created by the development.

--- Developers shall not pay in excess of their fair share of the additional public facilities and infrastructure.

--- Developers shall not be charged for the same facility or infrastructure costs more than once. Impact fees or other statutory provisions shall be reduced to reflect this requirement.

Definitions -- Back to Top

Definitions found in s. 66.0617:

Impact Fees: Cash contributions, contributions of land or interest in land or interests in land or any other items of value that are imposed on a developer by a political subdivision (county, city, village and town).

Capital Costs: The capital costs to construct, expand or improve public facilities, including the cost of land, and including legal, engineering and design costs to construct, expand or improve public facilities, except that not more than 10% of capital costs may consist of legal engineering and design costs unless the political subdivision can demonstrate that its legal, engineering and design costs which relate directly to the public improvement for which the impact fees were imposed exceed 10% of capital costs. “Capital costs” does not include other noncapital costs to construct, expand or improve public facilities.

Public Facilities: Highways, as defined in s. 340.01 (22), and other transportation facilities, traffic control devices, facilities for collecting and treating sewage, facilities for collecting and treating storm and surface waters, facilities for pumping, storing and distributing water, parks, playgrounds and other recreational facilities, solid waste and recycling facilities, fire protection facilities, law enforcement facilities, emergency medical facilities and libraries except that, with regard to counties, “public facilities” does not include highways, as defined in s. 340.01 (22), other transportation facilities or traffic control devices. “Public facilities” does not include facilities owned by a school district.

Wisconsin Regulations -- Back to Top

The state has no minimum standards for impact fees.

Source for text in oval:
Definition found in s. 66.0617, Impact Fees: Cash contributions, contributions of land or interest in land or interests in land or any other items of value that are imposed on a developer by a political subdivision (county, city, village and town).

Back to Top