Land Use & Zoning

An impact fee charged by a Tennessee municipality to a developer is intended to:

ACompensate adjacent property owners for the impact of new development
BOffset the cost of public infrastructure required to serve new development✓ Correct
CFund the environmental review process for new projects
DPay for the cost of rezoning hearings

Explanation

Impact fees are one-time charges imposed on new development to offset the costs of providing public services and infrastructure (roads, schools, parks, utilities) required to serve the new development. They are authorized under Tennessee's Development Impact Fee Act.

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