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Bill

SB 2427

Relating to the use of impact fees by a political subdivision.

89th Legislature (2025) Introduced by Bob Hall

SB 2427 restricts how Texas cities and counties collect and spend impact fees on new development, affecting infrastructure funding and housing affordability.

Referred to Local Government
#countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361)
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Bill Summary · SB 2427

Legislative bill overview

SB 2427 modifies how Texas political subdivisions (cities, counties, etc.) can collect and use impact fees—charges levied on new development to fund infrastructure. The bill establishes new restrictions or requirements governing when and how these fees can be collected and spent, though specific provisions are not detailed in the current legislative record since the bill is in early stages.

Why is this important

Impact fees directly affect development costs and housing affordability, as developers typically pass these charges to buyers and renters. Changes to impact fee rules influence how cities fund growth-related infrastructure like roads, schools, and utilities, affecting both fiscal planning and economic development patterns across Texas communities.

Potential points of contention

  • Developer vs. municipality interests: Restrictions on impact fees may reduce municipal revenue for infrastructure but could lower development costs and housing prices
  • Infrastructure funding gap: Limiting impact fees might shift funding burden to existing taxpayers or require alternative financing for growth-related projects
  • Local control concerns: State-level restrictions on local fee-setting authority may conflict with cities' autonomy to plan for their growth

Compiled from official sources — confirm details with the bill’s official record.

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