Land Use & Zoning

In North Dakota, 'impact fees' charged by municipalities to developers are intended to:

APenalize developers for building
BFund public infrastructure improvements needed to serve new development✓ Correct
CCompensate existing residents for inconvenience
DReplace property taxes on new construction

Explanation

Impact fees are charges imposed on new development to fund the cost of expanding public infrastructure (roads, utilities, schools, parks) necessitated by the development. They ensure new development pays its fair share of infrastructure costs.

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