Land Use & Zoning

In New Mexico, 'exactions' and 'impact fees' charged to developers by municipalities are:

AIllegal under New Mexico law
BCharges designed to offset the public infrastructure costs created by new development✓ Correct
COptional contributions at the developer's discretion
DFederal taxes on new construction

Explanation

Exactions and impact fees are charges imposed on new development to fund the public infrastructure (roads, schools, parks, utilities) needed to serve the new development. They must be rationally related to the development's impact.

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