San Tan Valley Council Adopts Impact Fees That Work Out to Zero for Most New Construction
This is a follow-up to our July 2026 article, San Tan Valley Council Sets Future Mayor and Council Pay, Adopts Impact Fee Study Framework, which covered the council's adoption of the study behind these fees.
What the Town Council Adopted
On Oct. 7, the Town of San Tan Valley council adopted development impact fees, following a public hearing on Sept. 2. The fees are a one-time charge on new construction and cover two categories: street facilities, and parks and recreation facilities. They take effect Dec. 21.
Why Most Categories Come Out to Zero
The town set its construction sales tax at 5% on July 1, compared with 2.25% for most other businesses. State law requires the town to credit that difference against the impact fee. At 5%, the credit covers the entire fee in every category except Mobile Home / Other. Town Manager Brent Billingsley told the council the fees come out to “essentially zero for most categories.”
Fee Amounts
- Single-family homes, apartments, stores, offices and hotels: $0 in most cases.
- Mobile Home / Other: $2,469 per housing unit after the credit ($133 for parks and $2,336 for streets).
- Without the credit, the study behind the fees supports up to $6,167 for a single-family home.
Where the Fees Apply
The fees apply only to construction inside San Tan Valley town limits. Construction in the unincorporated part of the San Tan Valley area is not subject to them. The town has an interactive map for checking which side of the town line an address falls on.
Projects Approved Before the Effective Date
Site plans and subdivision plats approved before Dec. 21 cannot be charged the new fee for 24 months after that date, as long as the project does not add units.
How the Fees Are Tied to the Sales Tax Rate
The credit is tied to the construction sales tax rate, so the fees change automatically if that rate changes. The town's fee report gives these examples: at 4.5%, apartments would owe $36 per unit and mobile homes would owe $2,956; at 4.25%, a single-family home would owe $642. The council directed staff to revisit both the fees and the construction sales tax after 24 months.
Source: SanTanValley.com, “Town Adopts Development Fees That Come to Zero for Most New Buildings.”