Where do the fees go?

[Yankee Chronicler]

In my state, building permit fees go into the municipality's general fund, and the administration typically only returns a portion to the department to fund its operations. I can't find it, but I think I recall someone on this forum commenting that their state law prohibits such inequitable practices.

If any of you live or work in a state that -- by statute -- prohibits using building permit fees to pay for anything other than building department operations ... please post a link to the statute so I can copy the language.

Thank you.

 

[steveray]

In my state, building permit fees go into the municipality's general fund, and the administration typically only returns a portion to the department to fund its operations. I can't find it, but I think I recall someone on this forum commenting that their state law prohibits such inequitable practices.

If any of you live or work in a state that -- by statute -- prohibits using building permit fees to pay for anything other than building department operations ... please post a link to the statute so I can copy the language.

Thank you.

Cali and Florida are the 2 biggies I have seen....Jeff should have Fla....

 

[steveray]

Check out this Thread...Joe put something in there from Cali

Post in thread 'Permit Expiration'

Jul 26, 2024

If it is a fee for service and we are keeping those fees we have an obligation to provide the service

We take the fees, and we are obligated to be ready to provide that service. I argue that it costs money to be ready, whether you use it or not.

• Joe.B

@Joe.B

 

[Joe.B]

California Code, HSC 17951.

HSC 17951 (c) The amount of the fees prescribed pursuant to subdivisions (a) and (b) shall not exceed the amount reasonably required to administer or process these permits, certificates, or other forms or documents, or to defray the costs of enforcement required by this part to be carried out by local enforcement agencies, and shall not be levied for general revenue purposes. The fees shall be imposed pursuant to Section 66016 of the Government Code.

 

[Joe.B]

Codes Display Text

 

[mtlogcabin]

We are audited every year by the state. Until 2023 we where only permitted to keep one year of budgeted expenses in a reserve account. We can now keep 3 years of budgeted expenditures in our reserve account. ​

TITLE 50. HEALTH AND SAFETY​

CHAPTER 60. BUILDING CONSTRUCTION STANDARDS​

Part 1. General Provisions​

Powers And Duties Of Counties, Cities, And Towns​

50-60-106. Powers and duties of counties, cities, and towns.

(g) ensure that all construction-related fees or charges imposed and collected by the county, city, or town are necessary, reasonable, and uniform and are:

(i) except as provided in subsection (2)(g)(iii), used only for activities in support of reviewing and issuing a building permit and for building code enforcement, which consists of those necessary and reasonable costs directly and specifically identifiable for the enforcement of building codes, plus indirect costs charged on the same basis as other local government proprietary funds not paying administrative charges as direct charges. If indirect costs are waived for any local government proprietary fund, they must also be waived for the program established in this section. Indirect charges are limited to the charges that are allowed under federal cost accounting principles that are applicable to a local government.

(ii) reduced if the amount of the fees or charges accumulates above the amount needed to enforce building codes for 36 months. The excess must be placed in a reserve account and may be used only for building code enforcement. Collection and expenditure of fees and charges must be fully documented.

50-60-106. Powers and duties of counties, cities, and towns, MCA

archive.legmt.gov

 

[Paul Sweet]

IBC with Virginia amendments:

107.1 Authority for charging fees
In accordance with § 36-105 of the Code of Virginia, fees may be levied by the local governing body in order to defray the cost of enforcement of the USBC. With the exception of the levy collected pursuant to Section 107.2, fees levied pursuant to this section shall be used only to support the functions of the local building department.
107.2 Code academy fee levy
In accordance with subdivision 7 of § 36-137 of the Code of Virginia, the local building department shall collect a 2.0% levy of fees charged for permits issued under this code and transmit it quarterly to DHCD to support training programs of the Virginia Building Code Academy. Localities that maintain individual or regional training academies accredited by DHCD shall retain such levy.

 

[tmurray]

It is this way in Canada too. Based on our Charter of Rights and Freedoms, taxes need to be levied in a very specific way. Fees don't come anywhere close.

We also have long standing, settled case law that a fee cannot exceed to average cost of service delivery for the service rendered.

The province of Ontario has gone as far as adopting this concept directly in their Building Code Act:


Fees
(2) The total amount of the fees authorized under clause (1) (c) must not exceed the anticipated reasonable costs of the principal authority to administer and enforce this Act in its area of jurisdiction.