Impact Fees in Florida: The Cost of New Construction Nobody Puts on the Sign
Impact fees Florida counties charge on new construction pay for roads and schools, plus utilities the new home will use. They run into the tens of thousands, they are in the builder's price, and they affect the appraisal.
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Impact fees Florida counties and cities charge on new construction fund the roads, schools and parks, plus utilities a new home will use.
They run into the tens of thousands in some counties, they are buried in the builder's price, and they shape the appraisal. Our guide to new construction mortgages in Florida covers the loan.
What they are
One-time charges levied at permit on new residential units.
The Florida Statutes section 163.31801 governs them.
Separate schedules for transportation, schools, parks, fire and water, plus sewer.
Set by county and city ordinance.
Paid by the builder or the owner-builder before the certificate of occupancy.
How much
Varies widely by county and by home size.
Some South Florida counties charge modest amounts; some central and coastal counties charge tens of thousands.
Water and sewer connection fees add more.
The county's fee schedule is public.
Ask the builder for the itemised figure.
Where they hide
In the builder's base price on a production home.
As a line item on a custom build.
See our guide to buying land and building in Florida.
Owner-builders pay them directly at permit.
They are part of the cost either way.
Lenders and impact fees
On a construction loan, impact fees are a budget line the lender funds at permit.
See our guide to construction loan draw schedules in Florida.
On a finished new home, they are inside the price and the appraisal.
The appraiser compares to other new homes that carried the same fees.
Resales without them can appraise lower per square foot.
The appraisal gap
A new home's price includes fees a resale never paid.
See our guide to low appraisals in Florida.
If the appraiser uses resale comparables, the new home can appraise below contract.
Builders steer appraisers to new-construction comparables.
The gap is your down payment if it appears.
Additions and ADUs
Adding a dwelling unit can trigger impact fees.
See our guide to mother-in-law suite financing in Florida.
Some counties waive or reduce them for accessory units.
A garage conversion that adds a kitchen may count.
Ask before the permit.
Waivers and reductions
Affordable housing and infill, plus redevelopment sometimes qualify.
Replacing a demolished home on the same lot often earns a credit for the prior use.
See our guide to buying at auction in Florida for teardown purchases.
Apply before the permit; credits are not retroactive.
The county's planning office has the forms.
Mobility fees
Some jurisdictions replaced transportation impact fees with mobility fees.
Same idea, different calculation.
Charged by trip generation rather than road cost.
Ask which applies.
Both appear at permit.
School fees
School districts levy their own impact fees in many counties.
Charged per unit regardless of whether the buyer has children.
Among the larger components.
Adjusted periodically by the school board.
Read the current schedule.
Utility connection fees
Water and sewer capacity fees are separate from impact fees but land at the same time.
See our guide to septic to sewer conversion in Florida.
Meter installation on top.
Wells and septic avoid them but have their own costs.
Budget both.
CDD fees are different
Impact fees are one-time at permit.
CDD assessments repay bonds over years on the tax bill.
See our guide to CDD fees in Florida.
A new community can carry both.
Ask about each.
Negotiating with a builder
Builders rarely itemise impact fees in a production sale.
Ask anyway; the number explains part of the price.
See our guide to builder deposits in Florida.
Incentives may offset closing costs instead.
The fee is sunk; the incentive is negotiable.
Property taxes after
Impact fees do not appear on the tax bill.
The new home's first assessment captures the full value.
See our guide to property tax estimates for new buyers in Florida.
The fee is inside the price the assessor sees.
One more reason new-home taxes start high.
Changes over time
Florida law limits how fast impact fees can rise and requires studies to justify them.
Counties update schedules every few years.
A permit pulled before an increase locks the old fee.
Builders time permits around changes.
Ask when the next update is due.
Resale of a new home
The next buyer does not pay impact fees again.
They are embedded in the value.
A new-home premium over resales partly reflects them.
That premium narrows as the neighbourhood ages.
Hold long enough to absorb it.
Checking the permit record
The county's permit portal shows fees paid on the building permit for a new home.
It confirms the builder paid them and the certificate of occupancy issued.
A home sold before the certificate of occupancy is not finished.
Ask for the permit number with the contract.
The record is public and takes a minute to pull.
Where to start
Pull the county's impact fee schedule and ask the builder for the itemised figure.
Compare the new home's price per square foot to nearby resales.
Then start a conversation and we will plan for an appraisal that reads the fees correctly.