Land Use & Zoning

An 'impact fee' in NC is charged to developers to:

AFund the developer's marketing costs
BCover the cost of public infrastructure improvements needed to serve new development✓ Correct
CCompensate existing residents for the inconvenience of new construction
DPay for environmental cleanup of the development site

Explanation

Impact fees are charged to new development to help pay for the cost of expanding or improving public infrastructure (roads, schools, water, sewer) necessitated by that development.

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