The Idaho Supreme Court has agreed with a district judge's ruling that the city of Coeur d'Alene had no authority to impose impact fees on new construction.
The Legislature has allowed only Ada County to impose impact fees, designed to provide the facilities necessitated by growth. Absent specific authority, the city has no power to impose the fees, which in reality are taxes, the court said Wednesday.The Legislature this session has been considering a bill that would allow all counties to impose fees on new construction. The bill was approved by a subcommittee of the House Revenue and Taxation Committee and will be up for a hearing before the full committee later.
In November 1993 Coeur d'Alene imposed a "development impact fee" on any change to improved or unimproved real estate, the use of any principal structure or land or any other activity requiring a building permit. The fees ranged from $720 to $882 for a single-family dwelling.
A district court ruled it was a tax, not a regulatory action.
In a unanimous decision written by Justice Linda Copple Trout, the higher court held that imposing a new tax is something that must be authorized by the Legislature.