# Permit Fees - What Percentage of Budget?



## Code Neophyte (Nov 10, 2009)

Especially if you are in a smaller jurisdiction and your department handles Code Enforcement (Property Maintenance, Nuisances, etc.) in addition to new construction inspection:

What percentage of your department's budget should be provided by building permit fees?  Should fees extend beyond the cost of providing the administrative and inspection functions directly related to the work being permitted, to include partially covering the cost of patroling neighborhoods for trash, etc.?


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## Mule (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

If you can the entire department should be funded by permit fees. Permit fees are "user" fees and the taxpayers should not supplement the budget for a service that they don't use.

A different view can be used for code enforcement. Code enforcement, trash, debris, property maintenance is a service for the entire community.

With that being said the building department should fund their portion 100% from permits, plan review etc., with the general fund supporting the personell and equipement for code enforcement, trash, debris etc.

Now if you have enough revenues to include a part of the code enforcemnt end of it that would be good! The fees can't be outragous for your area though.

The last few years our department was able to supplement other areas of the building department, planning, zoning, etc. This year we are doing good to provide enough revenue to cover just the personell directly in the building department.


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## cda (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

Was there a court case, maybe in Calif., that limited fees to amount of time it took to review plans, and inspect???? or something along that line?????


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## vegas paul (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

cda - good point, I heard about that also, however I can't cite any specific case.

We all know about multi-million dollar projects that wind up taking LESS time to review and inspect (because of the quality of the plans and contractors) than the $60,000 nightmare job.  When you base the permit and review fees on valuation (as we currently do), you can get some real lopsided fees relative to the time expended.


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## rktect 1 (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

So you are saying that because we know contractor/designer "X", lets call him Philipe, hands in terrible plans which require more time for review, we should charge him more than contractor/designer "Y", lets call him John?

There may be further lawsuits in the future I think.


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## cda (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

rktect 1

NO we should not charge anymore, but just put them in the shredder!!!!!!!!!


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## conarb (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

The California situation has been dictated by a Constitutional Amendment that limited tax increases, but not fees for services.  If the AHJ charges more than the cost of delivery of it's services the charges are considered a tax and as such unconstitutional. Many AHJs have ignored the law and have proceeded to continue to profit from their building departments' fees, in areas of tract home construction the NAHB has repeatedly sued and won large judgments; many have continued to charge outrageous fees feeling it more profitable to pay the judgments and attorneys' fees and continuing to profit from the unconstitutional fees.


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## vegas paul (Nov 10, 2009)

Re: Permit Fees - What Percentage of Budget?

rktect 1 - I believe it is permissible to charge extra time for PLANS REVIEW, but not for the permit in the case you describe.  Charging extra hourly review time for multiple re-reviews is common here.  Some plans require 3 corection letters before I can approve them...


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## jacqiejo (Nov 11, 2009)

Re: Permit Fees - What Percentage of Budget?

I live in a city of about 900,000. Our department handles all permits, inspections, code enforcement (both zoning and building), licensing, nuisance abatement, etc. The department is run only by permit fees and violation fines. No "tax dollars" fund our operations.


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