Pleasant Grove has become the first city in Utah to assess an interim service fee on new construction sites.
The council also approved a city street impact fee to pay for new roads in town.The fees, approved during last week's council meeting, will be charged to any new home or business when the builders pay for building permits. The amount that new home or business owners will have to pay will depend on when construction ends and the size and use of the structure.
The interim service fee will be charged as an adjusted property tax paid up front. Regular property taxes aren't paid on new homes until they are billed in November and assessed in January. Until now, homes built before January were not assessed property tax and received city services at no charge.
The City Council contracted with a national consulting firm, Tischler and Associates, to calculate adjusted property tax figures for the city. An average-size, single-family home completed the first week in January would be charged an interim fee of around $110. The same home built in July would pay half the $110 fee.
The council believes it has just cause to implement the fee.
"Our city services start during construction, and the residents of the city have to pay those fees, rather than the property owners who are building. Our police department responds regularly to construction sites, and so does our fire department," said Mayor Ed Sanderson.