Changes to impact fees
If your city has impact fees, you are likely aware that these are governed by the Local Government Code, Title 12, Chapter 395. There's an important update you need to be aware of. The Texas Senate Bill 1883 has just amended this legislation, and it brings some significant changes.
What’s new?
Under the new amendment, before a political subdivision can increase an existing impact fee or adopt a new one for a service area where an impact fee had previously been adopted, they must conduct an independent financial audit. This audit must be performed by an "independent auditor" who is a "certified public accountant or a public accountant licensed by the Texas State Board of Public Accountancy." Importantly, this auditor must not have been under contract to provide any other services to the political subdivision in the 12 months preceding the audit. This means your current financial statement auditors cannot complete this work.
Baker Tilly can help.
Our team of 350 industry-focused professionals has the qualifications and know-how to assist you. Serving more than 3,500 government clients nationwide, with five offices in Texas, we’re plugged into your needs and the latest regulations.
