Land Use & Zoning

In Colorado, an 'exaction' (or impact fee) is:

AA. A penalty for building code violations
BB. A fee or dedication required by a local government from a developer to offset the public costs (schools, roads, parks) associated with the new development✓ Correct
CC. A tax on real property transfers
DD. A fine imposed by the HOA on residents

Explanation

Exactions and impact fees are charges imposed by local governments on new developments to fund public infrastructure needed to serve the development — such as roads, schools, parks, and utilities. In Colorado, these must have a reasonable connection (nexus) to the impact caused by the development.

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