Impact fees are one-time fees assessed on new construction projects that developers and landowners pay to support new or expanded infrastructure needed for general government services, public safety and emergency management, and parks and trails. As the name suggests, the fees reflect the impact of new development on these services.

Click here to see the commissioners' resolution to adopt impact fees.

Impact fees are collected as a funding solution to allow new growth and development to pay its equitable share to limit unnecessary cost increases to existing property owners.

• Per resolution 2024-024, Impact fees apply to all new developments (commercial, industrial, institutional and residential).
  • This includes new office buildings, new homes, building remodels and additions like studios, commercial storage facilities, or other detached residential accessory structures. Greenhouses and barns and detached storage are not likely to generate impact and do not require impact fees.
  • In general, buildings or constructions that add an increased demand for services from government (like more administrative space, fire engines to respond to emergencies, trail maintenance for increased use due to population growth, etc.).
•  Impact fee development categories are defined as follows:
  • Commercial/Retail: establishments primarily selling merchandise, eating/drinking places and services. Examples include retail uses: shopping centers, supermarkets, pharmacies, restaurants, bars, nightclubs, automobile dealerships. Services examples include movie theaters, repair, health clubs, beauty, hotels and motels. Corresponds to Institute of Transportation Engineers ITE (11th Edition) land uses 300-320, 810-971. 
  • Industrial: establishments primarily engaged in the production, transportation or storage of goods. Examples include manufacturing plants, distribution warehouses, long-term storage, trucking and logistics. Also includes construction, utility and power generation facilities and telecommunications buildings. Corresponds to ITE (11th Edition) land uses 100-180.
  • Institutional: establishments providing education and healthcare services. Examples include universities, nursing homes, daycare facilities and hospitals. Corresponds to ITE (11th Edition) land uses 520-650.
  • Office: establishments providing management, administrative, professional or business services. Examples include medical/dental offices and business offices. Corresponds to ITE (11th Edition) land uses 700-731.
  • Residential: any building, structure use or development designed, intended or used as a dwelling unit or its accessory buildings, or that results in the expansion of a dwelling unit or units.
• Exceptions include:
  • New development with a building permit application deemed complete as of Aug. 1, 2024.
  • New development that does not create additional square footage.
  • New development that does not increase the demand for public facilities such as fences, signs, retaining walls, residential storage sheds, garages, etc.

Impact fees apply within the boundaries of Missoula County, including the City of Missoula. Click here to view the map and determine which service area applies to your property. 

The amount of the fee is determined by the cost-per-unit of service to new or expanding development to support facilities and other improvements required to serve new development while addressing increase in demand due to new development.TischlerBise, a third-party consultant, conducted a study in 2023 to determine the amount that can be charged for impact fees.

View the fee schedule by clicking here, and estimate the fees for your property by downloading this document.

You can read the full 2023 report by TischlerBise by clicking here.

For the Frenchtown Fire report, click here (page 15).

In 2023, the Impact Fee Advisory Committee and County staff developed recommendations for the fees after a year of working with consultants, holding public meetings and targeted interviews, and engaging with various community groups to gather feedback. An analysis of existing levels of service and capital needs to accommodate future growth was conducted by a third-party consultant, TischlerBise, and it determined how much the fees should be. 

The Board of County Commissioners established impact fees in May 2023, with guidance and input from the Impact Fee Advisory Committee, under the authority of state law (MCA 7-6-1601 et. seq.). The program began collecting fees on Aug. 1, 2024. The program is required to be reviewed and updated every five years, per state law.

The City of Missoula will collect impact fees for new developments within city limits through their building permit program.

Missoula County Planning, Development and Sustainability Department will collect impact fees for developments located outside of the City of Missoula through the permitting process.

Impact fees are collected prior to a building permit being issued by the City or County.

• General government impact fees are countywide fees collected for expanded government services to be used toward public facilities like administrative buildings.
• Sheriff's office impact fees are countywide fees collected for expanded public safety services to be used toward public facilities including law enforcement buildings and the detention center.
• Emergency management impact fees are countywide fees collected for expanded emergency management services including County buildings, equipment and digital communication systems.
• Frenchtown rural fire impact fees only apply within Frenchtown Rural Fire District and are collected for expanded fire and emergency services to be used toward public facilities and apparatuses.
• Shared-use paths impact fees only apply to residential developments and are calculated based on property location within service areas. Fees are collected for new and expanded shared use paths in each service area.
• Parks and recreation impact fees only apply to residential developments and are calculated based on property location within service areas. Fees are collected for park improvements in each service area.

Per resolution 2024-024, Missoula County could waive a portion or all impact fees when: 

• Offsets against the amount due may be accepted in cash, dedication of land, construction of all or part of a public facility identified in an adopted capital improvement plan.
• A waiver or fee reduction may be available for affordable housing developments.
• The County must approve any offsets and waivers.

Per resolution 2024-024, impact fees can be used for public facilities or improvements required to serve new development. They can also be used for excess capacity in existing facilities.

Impact fees may be used as payment for financing costs associated with bonds or other obligations issued to finance public facilities.

Impact fees are not used for maintenance purposes, operating costs or for corrections to existing deficiencies. This includes road and bridge maintenance.

• Impact fees may be refunded if the building permit has expired or been revoked by the City or County.
• Impact fees may also be refunded if the County fails to appropriate the funds collected within six years.

Impact fees were established by the Board of County Commissioners in spring 2023, with guidance and input from the Impact Fee Advisory Committee, under the authority of state law (MCA 7-6-1601 et. seq.)

Use of impact fees to fund or help fund qualifying projects will be guided by the Impact Fee Advisory Committee, with decisions made by the Board of County Commissioners.

The impact fee program (collection and appropriation of impact fees) is administered by the Planning, Development and Sustainability Department, and the County Finance Office oversees financial monitoring.

Read the Resolution 2023-044 adoption of impact fees (includes the impact fee study and recommendations of the Impact Fee Advisory Committee) 

Residential development is based on interior square footage, excluding non-living space such as decks and garages. Commercial development is based on the type of use and is a flat fee, regardless of size. Applicants will be required to provide this information on building permit applications in order to calculate impact fees.