Land Use & Zoning

In South Carolina, what is the primary purpose of an 'impact fee'?

ATo penalize developers for environmental damage
BTo fund public infrastructure improvements (roads, schools, utilities) made necessary by new development✓ Correct
CTo compensate neighboring property owners for reduced property values
DTo pay for zoning variance hearings

Explanation

Impact fees are charged to developers to offset the cost of public infrastructure improvements required by new development. In South Carolina, they are authorized by the SC Development Impact Fee Act and must be spent on infrastructure benefits to the development.

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