Land Use & Zoning
In Kentucky, 'impact fees' charged to new development are subject to legal challenge if:
AThey are too small to fund needed improvements
BThey are not proportional to the actual impacts caused by the development✓ Correct
CThey are collected at the time of building permit
DThey fund improvements outside the immediate area
Explanation
Impact fees must be proportional (have a rational nexus) to the burden the new development places on public infrastructure. Disproportionate fees may be challenged as an unconstitutional taking.
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