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.

Related South Dakota Land Use & Zoning Questions

Practice More South Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Dakota Quiz →