Horry County Council has unanimously passed a new ordinance restructuring impact fees on new homes and businesses in unincorporated areas. The new fee schedule, which takes effect July 20, will charge $2,392 for a 2,000-2,500 square foot home, split across parks and recreation, fire and rescue, solid waste collection, and police services.

Background

The impact fee debate has been ongoing in Horry County for nearly two decades. In 2018, 72% of voters supported the implementation of impact fees. However, the initial fees adopted in 2021 were significantly reduced, with stormwater and transportation categories dropped and the overall fee cut by roughly 81.5%.

Proponents of the fees argue that they are necessary to fund growth-related costs, such as new fire stations and rec center upgrades. Critics, including the real estate and homebuilding industry, argue that higher fees will increase home prices and reduce affordability.

Impact Fee Structure

Under the new ordinance, impact fees will be used to fund capital costs, such as new fire stations, parks, roads, and public safety buildings. The fees will not be used for day-to-day operating expenses like salaries. The South Carolina Development Impact Fee Act requires that the money be spent within three years of collection.

Horry County is not the only county in South Carolina to charge impact fees. Beaufort County, for example, charges a single-family home fee of around $5,500, more than double Horry County’s new fee.

The city of North Myrtle Beach also charges its own water and sewer impact fees, separate from the county’s broader parks-police-fire-solid-waste fee. The city recently raised its single-family water impact fee from $3,322 to $3,520 and its sewer fee from $2,816 to $2,955.

Original reporting: MyrtleBeachSC News — read the source article.