Land Use & Zoning

A Mississippi city levies 'impact fees' on new residential developments. Impact fees are intended to:

AGenerate general fund revenue for the city
BRequire new development to pay for its proportionate share of infrastructure improvements needed to serve the development✓ Correct
CPunish developers for building in flood zones
DFund affordable housing programs

Explanation

Impact fees are one-time charges on new development to fund infrastructure (roads, water/sewer, parks, schools) needed to serve the increased demand the new development creates. They shift infrastructure costs to new development rather than existing taxpayers.

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