One City May Be Collecting Impact Fees Illegally

"In 2002, the U.S. 5th Circuit Court of Appeals ruled that the city of Madison's impact fee was a tax, and the town had no authority under Mississippi law to levy taxes." According to the Attorney General, the impact fee "does not fall under state law that allows regulatory fees, as those fees are to fund only administrative costs related to the regulations of growth." Fees so far, have been collected by the City of Ocean Springs on new residential and commercial construction since February 2003.

Thanks to Jason Todd