Land Use & Zoning
In South Dakota, 'impact fees' charged by a municipality to a new development are designed to:
APenalize developers for building in protected areas
BRequire new development to pay a proportionate share of the infrastructure costs it creates (roads, water, sewer, parks)✓ Correct
CFund the municipality's general budget
DCompensate neighboring property owners for inconvenience during construction
Explanation
Impact fees require new developments to contribute to the cost of public infrastructure needed to serve them, preventing existing taxpayers from bearing the full cost of growth.
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