Development Impact Fees

The City of Tucson is currently in the process of updating the Development Impact Fee Program. The City last updated its development impact fee program in 2020. As part of State law, municipalities are required to make updates every five years and produce reports that project the amount of growth expected and the necessary public services or facility expansions needed.

2025 Development Impact Fee Program Proposed Fees

Draft Fees Report

Get an estimate for assessed impact fees related to a development project online by using the Development Impact Fee Calculator

What are Development Impact Fees?

The City assesses a one-time fee on new development to help fund a proportionate share of the cost of infrastructure needed to serve that development. Impact fees are also assessed when there is an expansion of the development or a change in use that requires a higher service need. Fees are assessed in all City of Tucson Service Areas.

Finance/Budget Division administers the program (prepares the budgets and tracks all revenue/expenditure activity).

Planning and Development Services assists with the required update process (currently ongoing) and collects development impact fees when a building permit is issued.

Development impact fees are one-time fees dedicated to expand:

Roads
Parks
Police Services
Fire Services

Development impact fees apply to developments if:

There is new development (residential and commercial)
A change in use that requires a larger service need

Planning and Development Services works with developers to determine the service fee based on:

The service area
The use
The development size

Arizona State Statutes authorize municipalities to collect development impact fees to fund infrastructure necessitated by growth. State law requires that there be a beneficial nexus between the development that pays the fees and the infrastructure built with those fee revenues. Fees collected in each service area must be spent in the same respective service area and can only be used to construct new facilities or expand existing facilities to provide service to new development. These fees cannot be used to repair, replace, operate, or maintain existing facilities.

The City of Tucson last updated its development impact fee program in 2020. As part of State law, municipalities are required to make updates every five years and produce reports that project the amount of growth expected and the necessary public services or facility expansions needed.

Adopted Land Use Assumptions, Infrastructure Improvements Plan, and Development Impact Fee Report (2020)

Mixed Use Incentive (In effect 8/23/20)