Road Impact Fees

An impact fee is a charge on new development that is based on the developments impact on public facilities.  Road impact fees are used to offset the cost of transportation improvements that are necessary due to new development. 

Impact fees may be used to construct new roads and make improvements to existing roads and related appurtenances, such as sidewalks that benefit the development. 

The Virginia Department of Transportation (VDOT) is working with Virginia Tech and Dr. A. Chris Nelson to produce a model impact fee ordinance and an Impact Fee Handbook.  The Impact Fee Handbook is intended to serve as a guide to localities and will provide methodologies to help local government officials fulfill the requirements of the impact fee statute.  More information on the Impact Fee Handbook will be provided as it becomes available.

Before localities may impose impact fees they have to establish an impact fee service area.  Impact fees may be imposed an all new commercial and residential development within an impact fee service area, including development which provided proffers at rezoning.  However, localities must provide credit against the impact fee for any transportation related proffer that is contributed by a developer.

The amount of the impact fee is based on the commercial and residential development that may occur in the impact fee service area and costs of reasonable road improvements that benefit the impact fee service area.

To see a list of localities that have the authority to impose road impact fees, click here.