Land Use & Zoning

In Rhode Island, what is a 'development impact fee'?

AA penalty for violating zoning regulations
BA fee charged by municipalities to new development to help fund the infrastructure needed to serve it✓ Correct
CA state tax on real estate sales
DA fee charged by CRMC for coastal permits

Explanation

Development impact fees are one-time charges levied on new development (typically at the building permit stage) to help municipalities fund the public infrastructure (roads, schools, water/sewer) that will be needed to serve the new development.

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