What Determines Public Support for Graduated Development Impact Fees?

Abstract

The development impact fee is one growth management tool that is often adopted to reduce externalities associated with development on the urban fringe. But it is also used as a revenue generator that offsets property taxes. While graduated impact fees are a potential means to reduce sprawling development, it is unclear which public constituencies favor their adoption. Using an adjacent category logit model, there is limited evidence for exclusion based on race or class and, surprisingly, homeownership is not a major determinant of support. The model results indicate differences in policy preferences among longtime Phoenix residents, newcomers, city dwellers, and sub/exurbanites, which may suggest a desire to maintain the status quo and shift the burden of new development to developers and homebuyers. This article contributes to local government literature through an empirical examination of how sociodemographic factors drive public support for graduated development impact fees.

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