Dickson County, Tennessee

Impact Fee Feasibility Study
   

For Dickson County, Duncan Associates evaluated the feasibility of adopting impact fees or development taxes to fund capital facilities required to serve new growth. The report examined county growth history and estimates existing development. It then describes the various types of facilities provided by the County and, where feasible, provides a preliminary estimate of maximum fees or taxes that might be charged. The study also discusses the legal framework relating to impact fees and policy issues that should be considered by the County. Charges to new development can take the form of either impact fees

or development taxes. Impact fees are typically assessed as a lump sum per unit by type of residential unit, whereas development taxes are almost always assessed on a per square foot basis. An advantage of impact fees over development taxes is that they can often be adopted without explicit state enabling legislation. Tennessee courts, however, have taken a relatively narrow view of implied police powers of counties or municipalities to regulate land development. Most governments in the state that have adopted impact fees or taxes have done so only after having received special authorization from the state legislature. The study examines the types of capital facilities and services provided by the County and makes a preliminary estimate of the net costs to serve new development at the existing level of service. Four types of facilities are identified for which impact fees could be justified based on existing data: schools, administrative facilities, criminal justice facilities and libraries. Schools are also the only facility for which the County has a master plan detailing needed capital improvements. While a master plan or capital improvements plan is not a necessary prerequisite for adoption of an impact fee or development tax, it does provide a sounder legal basis for impact fees as well as demonstrate to the public and to the state legislature that near-term capital improvements are required to accommodate growth.