# Building permit fee schedules



## Pcinspector1 (Oct 17, 2013)

Does anyone use or adopt the IRC Appendix-L for determining permit fees?

I'm looking for a fee schedule between the $15.00 to $24.00 starting range. Some city's fees start around $30.00 as their minimum starting point.

Thanks

pc1


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## rshuey (Oct 17, 2013)

We have a 65.00 min fee. How can anyone do an inspection for 15-24 dollars?


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## steveray (Oct 17, 2013)

rshuey said:
			
		

> We have a 65.00 min fee. How can anyone do an inspection for 15-24 dollars?


Try telling my town manager that.....We are $15 per $1000...with$15 as the minimum....


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## Pcinspector1 (Oct 17, 2013)

steveray,

Were at a $15.00 mim. for the first $500.00 and the Appendix-L in the IRC bumps it up to $24.00. I don't think that's too big of an increase but all city's have other add-ons like water and sewer fees and plan review fes. I collect an EDU fee here which bumps the permit up abit!

rshuey, your right on, by the time I track down all the needed info from the applicant and enter it into the computer, wait on the others to finish using the copier, load the copier with paper, finish my coffee and donut, call the applicant, I've burned up the permit fee. Now the inspections cost the city.

Thanks for the response!

pc1


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## fireguy (Oct 17, 2013)

Why should a tax-paying citizen subsidize your building department? Your  business should generate enough income to be in the black, not red.  When a permit request comes in, start a simple time sheet to track the time, and cost of that time.    Talk to public works or the head pencil pusher in the finance department for suggestions. Figure the real cost of that second or third trip to the job site because the contractor was not ready. Have a price schedule to insert in to the permit papers. And charge for your service.  But make sure your service is done by qualified people.

OK, I've upset enough people for today. I have estimates to do.


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## rshuey (Oct 17, 2013)

fireguy is correct. No tax revenue is used by my office. We are self-sustaining. Our permit fees and housing inspection fees carry the office.


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## rshuey (Oct 17, 2013)

Why should my neighbor pay for my building permit?


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## pwood (Oct 17, 2013)

rshuey said:
			
		

> Why shouldn't my neighbor pay for my building permit?


 there i fixed it for you.


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## steveray (Oct 17, 2013)

rshuey said:
			
		

> fireguy is correct. No tax revenue is used by my office. We are self-sustaining. Our permit fees and housing inspection fees carry the office.


Same here...In most of the towns I have worked in we typically generate twice what we use....but of course we only get half of what we need...


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## tmurray (Oct 17, 2013)

rshuey said:
			
		

> fireguy is correct. No tax revenue is used by my office. We are self-sustaining. Our permit fees and housing inspection fees carry the office.


Same here too. We have some neighboring jurisdictions that justify the use of funds from the general account by saying that the low fees increase the amount of building. Oddly enough, construction in our community has seen little impact from the economic downturn, but their's is at a standstill.


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## mtlogcabin (Oct 17, 2013)

Like most businesses  you will have what is known as a "leader product" to attract customers into your business, such as oil for $1.99 a quart. They will never on their own generate enough "profit" to cover the expenses of stocking the item on the shelve and the time/labor it takes to ring up the purchase. The idea is hopefully the customer will purchase additional items with a higher profit margins to go along with the "leader product" purchase.

Low minimal permit fees for small one stop inspections will bring "customers" into your building department that you would never see otherwise. It is an opportunity for you to interact and educate your customers about the services you provide.

I am sure you do not return larger protect fees because you only did 10 inspections and collected a $2,500 permit fee.


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## Min&Max (Oct 17, 2013)

We have a $25.00 minimum and charge on a sq.ft. basis for building permits. .20 for finished area grade floor and above, .13 finished basement, .10 unfinished basement, .10 attached garage, .16 remodel and basement finish, .13 accessory buildings, decks and warehouse.


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## tmurray (Oct 17, 2013)

mtlogcabin said:
			
		

> Like most businesses  you will have what is known as a "leader product" to attract customers into your business, such as oil for $1.99 a quart. They will never on their own generate enough "profit" to cover the expenses of stocking the item on the shelve and the time/labor it takes to ring up the purchase. The idea is hopefully the customer will purchase additional items with a higher profit margins to go along with the "leader product" purchase. Low minimal permit fees for small one stop inspections will bring "customers" into your building department that you would never see otherwise. It is an opportunity for you to interact and educate your customers about the services you provide.
> 
> I am sure you do not return larger protect fees because you only did 10 inspections and collected a $2,500 permit fee.


The problem I have with this is that we only do building permits here. There is no high profit margin product to recover the money we lose on permits. So to have a low permit fee (ours is currently 20$ min. which I have never heard a complaint about) would mean that funds are taken out of the general revenue account, which results in higher property taxes.


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## mtlogcabin (Oct 17, 2013)

How many permits do you issue a year? What percentage are minimums?

We issue about 300 building permits a year in city of about 20,000 people. About 90 of those permits are SFR's the rest commercial or the very few minimums that you mention (est 20 per year).

If you do not have a couple of larger commercial projects every year then you will never be able to be self funded

Just curious what are your fees on a $250,000.00 commercial project?

Mine would be $1,614.85 permit plus $1049.65 plan review.


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## tmurray (Oct 18, 2013)

mtlogcabin said:
			
		

> How many permits do you issue a year? What percentage are minimums? We issue about 300 building permits a year in city of about 20,000 people. About 90 of those permits are SFR's the rest commercial or the very few minimums that you mention (est 20 per year).
> 
> If you do not have a couple of larger commercial projects every year then you will never be able to be self funded
> 
> ...


Our town is 17,000 people, but we have limited Non-SFR areas. We do approximately 300 permits a year. 20% of our permits would have a permit value of 20$.

A 250,000$ commercial project would cost 1520$ in building permit fees. However, a significant portion of our SFRs are anywhere between 400,000$ and 1.2 million dollars, so we are able to keep our department in the black.


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## Pcinspector1 (Oct 18, 2013)

mtlogcabin,

Not sure who you directed that question too, but we do on an average 200 permits, 60% commercial and 40% residential. No new housing subdivisions, thoose are outside the city limits in the county. Minimum permit is $15.00 and a building permit only for a $250.000. commercial job would be $1,164.50. Then we add the EDU fees for water and sewer which is calculated based on the commercial w&s use. Plan review fees are charged at 65% of the building permit fee.

As fireguy stated he would be subsidizing this department we general tax revenues. Also the department is provided with a codes vehicle. This department does code enforcement and PnZ functions. But they get so much more bank for the buck here!  

pc1


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## fireguy (Oct 19, 2013)

I paid for apermit today.  The cost, $28.39. It will take the B/O 1 hour of drive time.  The inspection will take about an hour.   $28.39 divided by 3hours =$9.46 an hour.  Any of you B/O  work for that amount of money.  No wonder the State of Oregon is in financial trouble.


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