Land Use & Zoning
In South Dakota, 'impact fees' charged by municipalities for new development are intended to:
APunish developers for environmental impacts
BRequire new developments to contribute to the cost of infrastructure improvements needed to serve them✓ Correct
CCompensate existing property owners for decreased values
DFund ongoing municipal operations
Explanation
Impact fees are one-time charges assessed on new developments to fund the infrastructure improvements (roads, utilities, schools, parks) needed to serve the increased demand created by the development. They shift the cost of growth to new development rather than existing taxpayers.
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