Land Use & Zoning
Texas state law limits how much a municipality can charge in impact fees. These fees must be based on:
AThe developer's profit margin
BThe capital improvement costs reasonably attributable to and necessitated by new development✓ Correct
CTREC's property registration fees
DComparable fees charged by neighboring cities
Explanation
Texas Local Government Code Chapter 395 requires that impact fees be based on the capital improvement costs that are reasonably attributable to and necessitated by new development. Fees must be calculated through a documented capital improvements plan.
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