Report: The Unintended Consequences of Impact Fees in Baltimore County

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Baltimore County has an opportunity to appeal to young professional families, including people who presently live in high-rent city apartments.  That would expand the county’s tax base, stimulate commercial activity, and help rebalance the county demographically. However, proposed tax and development fee increases could induce many young people to opt for residences in other counties.  That would serve to limit Baltimore County’s tax base growth, and hurt the local construction industry, local retailers and other commercial enterprises. Proposed impact fees would also potentially impact the pace of commercial development, resulting in even more burden placed on shrinking numbers of prime age workers/households.  Such outcomes would be inconsistent with long-term investment in infrastructure, including schools.

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