Land Use & Zoning

In Montana, impact fees charged by a municipality to a developer are intended to:

ARaise general municipal revenue for unrelated purposes
BFund public infrastructure improvements necessitated by the new development✓ Correct
CPenalize developers for building in sensitive areas
DReplace property tax revenue for new developments

Explanation

Impact fees are one-time charges assessed by Montana municipalities on new development to fund public infrastructure (roads, parks, water/sewer) needed to serve the development. They are intended to ensure new development pays its proportionate share of infrastructure costs.

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