The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/CS/CS/SB 750
INTRODUCER: Appropriations Committee; Finance and Tax Committee; Community Affairs
Committee; and Senator Gruters and others
SUBJECT: Impact Fees
DATE: April 18, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. Kim Babin FT Fav/CS
3. Kim Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/CS/SB 750 makes a number of changes regarding limitations on, and requirements for,
the imposition of impact fees by local governments to fund local infrastructure to meet the
demands of population growth. The bill:
 Specifies that impact fees may be utilized only for fixed capital expenditures or fixed capital
outlays for major capital improvements;
 Revises requirements for crediting contributions against the collection of impact fees;
 Specifies limitations and restrictions on certain impact fee increases;
 Specifies criteria that must be met to be exempted from certain fee increase limitations and
restrictions; and
 Revises annual financial reporting requirements for local governments relating to impact
fees.
The Revenue Estimating Conference determined that the bill will have a negative indeterminate
fiscal impact on local governments and school districts.
The bill takes effect upon becoming a law.
BILL: CS/CS/CS/SB 750 Page 2
II. Present Situation:
Local Government Authority
The State Constitution grants local governments broad home rule authority. Specifically,
non-charter county governments may exercise those powers of self-government that are provided
by general or special law.1 Those counties operating under a county charter have all powers of
self-government not inconsistent with general law or special law approved by the vote of the
electors.2 Likewise, municipalities have those governmental, corporate, and proprietary powers
that enable them to conduct municipal government, perform their functions and provide services,
and exercise any power for municipal purposes, except as otherwise provided by law.3
Under the State Constitution, local governments have no authority to levy taxes, other than ad
valorem taxes, except as provided by general law.4 However, local governments have authority
under their home rule authority to impose special assessments and user fees.5
Local Government Impact Fees
In Florida, impact fees are imposed pursuant to local legislation and are generally charged as a
condition for the issuance of a project’s building permit. The principle behind the imposition of
impact fees is to transfer to new users of a government-owned system a fair share of the costs the
new use of the system involves.6 Impact fees have become an accepted method of paying for
public improvements that must be constructed to serve new growth.7 In order for an impact fee to
be a constitutional user fee and not an unconstitutional tax, the fee must meet a dual rational
nexus test, in that the local government must demonstrate the impact fee is proportional and
reasonably connected to, or has a rational nexus with:
 The need for additional capital facilities and the increased impact generated by the new
residential or commercial construction; and
 The expenditures of the funds collected and the benefits accruing to the new residential or
nonresidential construction.8
Impact fee calculations vary from jurisdiction to jurisdiction and from fee to fee. Impact fees also
vary extensively depending on local costs, capacity needs, resources, and the local government’s
determination to charge the full cost or only part of the cost of the infrastructure improvement
through utilization of the impact fee.
1
FLA. CONST. art. VIII, s. 1(f).
2
FLA. CONST. art. VIII, s. 1(g).
3
FLA. CONST. art. VIII, s. 2(b); s. 166.021(1), F.S.
4
Collier County v. State, 733 So. 2d 1012, 1014 (Fla. 1999).
5
Id.
6
Contractors & Builders Ass'n of Pinellas County v. City of Dunedin, 329 So. 2d 314, 317-318 (Fla. 1976).
7
St. Johns County v. Ne. Florida Builders Ass'n, Inc., 583 So. 2d 635, 638 (Fla. 1991); s. 163.31801(2), F.S.
8
See St. Johns County at 637. Codified at s. 163.31801(3)(f) and (g), F.S.
BILL: CS/CS/CS/SB 750 Page 3
Until 2006, the characteristics and limitations of impact fees in Florida were found in case law
rather than state statute.9 In 2006, in response to local governments’ reliance on impact fees and
the growth of impact fee collections, the Legislature adopted the Florida Impact Fee Act10, found
in s. 163.31801, F.S., which requires local governing authorities to satisfy certain requirements
when imposing impact fees.11 Section 163.31801(3), F.S., provides requirements and procedures
for the adoption of an impact fee. An impact fee adopted by ordinance of a county or
municipality or by resolution of a special district must, at minimum, meet the following criteria:
 The fee must be calculated using the most recent and localized data.
 The local government adopting the impact fee must account for and report impact fee
collections and expenditures. If the fee is imposed for a specific infrastructure need, the local
government must account for those revenues and expenditures in a separate accounting fund.
 Charges imposed for the collection of impact fees must be limited to the actual costs.
 All local governments must give notice of a new or increased impact fee at least 90 days
before the new or increased fee takes effect, but need not wait 90 days before decreasing,
suspending, or eliminating an impact fee. Unless the result reduces total mitigation costs or
impact fees on an applicant, new or increased impact fees may not apply to current or
pending applications submitted before the effective date of an ordinance or resolution
imposing a new or increased impact fee.
 A local government may not require payment of the impact fee before the date of issuing a
building permit for the property that is subject to the fee.
 The impact fee must be reasonably connected to, or have a rational nexus with the need for
additional capital facilities and the increased impact generated by the new residential or
commercial construction.
 The impact fee must be reasonably connected to, or have a rational nexus with, the
expenditures of the revenues generated and the benefits accruing to the new residential or
commercial construction.
 The local government must specifically earmark revenues generated by the impact fee to
acquire, construct, or improve capital facilities to benefit new users.
 The local government may not use revenues generated by the impact fee to pay existing debt
or for previously approved projects unless the expenditure is reasonably connected to, or has
a rational nexus with the increased impact generated by the new residential or commercial
construction.
Meeting the dual rational nexus test requires the local government ordinance or resolution
imposing the impact fee to earmark the funds collected for acquiring the new capital facilities
necessary to benefit the new residents.
Some local governments impose impact fees specifically for local school facilities.12 School
districts have authority to impose ad valorem taxes within the district for school purposes13 but
9
Office of Economic and Demographic Research, The Florida Legislature, 2020 Local Government Financial Information
Handbook, Dec. 2020, 13, available at http://edr.state.fl.us/Content/local-government/reports/lgfih20.pdf (last visited April
15, 2021).
10
Ch. 2006-218, s. 9, Laws of Fla.
11
Supra note 9.
12
See, e.g., Miami-Dade County Code of Ordinances ch. 33K, Educational Facilities Impact Fee Ordinance and Orange
County Code of Ordinances ch. 23, art. V, School Impact Fees.
13
FLA. CONST. art. VII, s. 9(a), and art. IX, s. 4(b); See s. 1011.71, F.S.
BILL: CS/CS/CS/SB 750 Page 4
are not general purpose governments with home rule power14 and are not expressly authorized to
impose impact fees.15 Local governments imposing specific impact fees for education capital
improvements typically collect the fees for deposit directly into an account segregated for
funding those improvements.16
Section 163.31801(4), F.S., provides that a local government must credit against the collection of
an education-based impact fee any contribution for public education facilities on a dollar-for-
dollar basis at fair market value.
Section 163.31801(5), F.S., provides that if a local government increases its impact fee rates, the
holder of any impact fee credits, whether such credits are granted under concurrency,
developments of regional impact, or otherwise, which were in existence before the increase, is
entitled to the full benefit of the intensity or density prepaid by the credit balance as of the date it
was first established.
Financial Reporting
Counties, district school boards, municipalities with revenues or total expenditures and expenses
exceeding $250,000, and special districts with revenues or total expenditures and expenses
exceeding $100,000 must have an annual financial audit prepared by either the Auditor General
or an independent certified public accountant.17 Municipalities with revenues or total
expenditures and expenses between $100,000 and $250,000, and special districts with revenues
or total expenditures and expenses between $50,000 and $100,000, must have a financial audit
prepared every three fiscal years.18 Municipalities with revenues or total expenditures and
expenses less than $100,000 and special districts with revenues or total expenditures and
expenses of less than $50,000 are not required to have their financial statements audited.19 All
local governmental entities are required to file an annual financial report with the Department of
Financial Services no later than nine months from the end of the entity’s fiscal year.20
The financial audit report of a county, municipality, special district, or district school board filed
with the Auditor General must include an affidavit signed by the chief financial officer21 of the
14
See FLA. CONST. art. VIII, ss. 1(f)-(g) and 2
15
Section 163.31801(2), F.S.
16
In Miami-Dade County, the education facility impact fee is paid to the County Planning & Zoning Director, who must then
deposit that amount into a specific trust fund maintained by the county. See Miami-Dade County Code of Ordinances, ss.
33K-7(a), 33K-10(c). In Orange County, the school impact fee is paid to the county or municipality (if the land being
developed is within a municipality), which then transfers the funds collected at least quarterly to the Orange County School
District. The District is responsible for maintaining the trust into which the impact fee revenues must be deposited. See
Orange County Code of Ordinances, s. 23-142.
17
Section 218.39(1), F.S.
18
Section 218.39(1), F.S.
19
Section 218.39(1), F.S.
20
Section 218.39(1), F.S.
21
The term “chief financial officer” for a local government is not defined in statute. For counties, the county commission
may designate a county budget officer, typically either the county comptroller or the clerk of the circuit court. Section
129.025, F.S. The finances of a municipality are under the authority of the governing body, which may designate a municipal
budget officer. Section 166.241, F.S. Special district boards are responsible for district financial management. Section
189.016(3), F.S. District school boards are responsible to manage and oversee district finances. Section 1001.42(12), F.S.
BILL: CS/CS/CS/SB 750 Page 5
reporting entity that the local governmental entity or district school board has complied with the
requirements of the impact fee statute.22
In addition to their annual financial reporting requirements, counties, municipalities, and special
districts must report the following information on all impact fees charged:23
 The specific purpose of the impact fee, including the specific infrastructure needs to be met,
including, but not limited to, transportation, parks, water, sewer, and schools.
 The impact fee schedule policy describing the method of calculating impact fees, such as flat
fees, tiered scales based on number of bedrooms, or tiered scales based on square footage.
 The amount assessed for each purpose and for each type of dwelling.
 The total amount of impact fees charged by type of dwelling.
 Each exception and waiver provided for construction or development of housing that is
affordable.
III. Effect of Proposed Changes:
Definitions
The bill defines “infrastructure” as a fixed capital expenditure or fixed capital outlay, excluding
the cost of repairs or maintenance, associated with the construction, reconstruction, or
improvement of public facilities with a life expectancy of at least 5 years; related land
acquisition, land improvement, design, engineering, and permitting costs; and other related
construction costs required to bring the public facility into service. The term also includes a fire
department vehicle, an emergency medical service vehicle, a sheriff’s office vehicle, a police
department vehicle, a school bus, and the equipment necessary to outfit the vehicle or bus for its
official use. For the independent special fire control districts, the term includes “new facilities”
as defined in the independent special fire control district statute.24 The bill also defines “public
facilities” as major capital improvements, including transportation, sanitary sewer, solid waste,
drainage, potable water, educational, parks, and recreational facilities, and expressly includes
emergency medical, fire, and law enforcement facilities.
Impact Fee Credits
The bill expands the current requirement, added in 2019,25 for local governments to credit
against impact fees any contributions related to public education facilities. First, the bill subjects
special districts to the requirement. Second, it expands the credit requirement to any contribution
related to the improvement of public facilities or infrastructure, rather than only public education
facilities under current law. Third, it provides that any contribution must be applied on a dollar-
for-dollar basis at fair market value to reduce any impact fee collected for the general category or
class of public facilities or infrastructure for which the contribution was made, rather than only
education-based impact fees under current law. However, if a local government or special district
does not charge and collect an impact fee for the general category or class of public facilities or
22
Section 163.31801(6), F.S.
23
Section 163.31801(11), F.S.
24
Section 191.009(4), F.S. That statute defines “new facilities” as land, buildings, and capital equipment, including, but not
limited to, fire and emergency vehicles, radio telemetry equipment, and other firefighting or rescue equipment.
25
Chapter 2019-165, s. 5, Laws of Fla.
BILL: CS/CS/CS/SB 750 Page 6
infrastructure contributed to, the credit may not be applied. All credits against impact fee
collections must be made regardless of any provision in a local government’s or special district’s
charter, comprehensive plan policy, ordinance, resolution, or development order or permit.
The bill provides applicability for a current provision in s. 163.31801(8), F.S., which provides
for the assignability and transferability of impact fee credits between developments and parcels
within the same impact fee zone or district or within certain adjoining impact fee zones or
parcels. The bill provides that the provision applies to all impact fee credits regardless of whether
the credits were established before or after the effective date of this act. The bill directs the
Division of Law Revision to replace the phrase “the effective date of this act” with the date the