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IPFNA_Policy Analysis Memo_Jan_06
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IPFNA_Policy Analysis Memo_Jan_06
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so. Local funding that is committed to be used for capacity expansion in the future needs to be tak <br />into account only in cases where there is no reasonable need for or benefit from higher levels of service <br />than the existing level of service embodied in the impa ct fee calculations. As long as the fees are based <br />on new development paying to maintain existing leve ls of service that have been paid for in full by <br />existing development, and additional funding can re asonably be used to raise the level of service for <br />existing and new development alike, no additional revenue credit <br />HawaiÔiÔs statute is one of only a ha ndful of state enabling acts that re quire credit for past property tax <br />payments. Section 46-143(d)(5) states that the Ñex tent to which a developer required to pay impact fees <br />has contributed in the previous five years to the cost of existing public facility capital improvements and <br />received no reasonable benefit therefrom, and any cr edits that may be due to a development because <br />of such contributionsÒ shall be taken into consideration in the impact f ee calculation. And the definition <br />of Ñproportionate shareÒ cited above makes clear that this refers not just to developer exactions, but also <br />to past property tax payments. Prior to development, the owners <br />property taxes that may have been used, in part, to construct capital facilities of the type for which <br />impact fees are being assessed. Consequently, it will be necessary to reduce impact fees by the present <br />value of property tax payments over the last five years that were used to construct existing capital <br />facilities of the type for which the fees are being charged. <br />H Ô C \I N A ÐP A M January 5, 2006 , Page 9 <br />AWAI I OUNTY NFRASTRUCTURE EEDS SSESSMENT OLICY NALYSIS EMORANDUM <br /> <br />
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