Resolution Supporting the Extension of the Impact Fee Expenditure Timeline

WHEREAS, South Carolina is one of the fastest-growing states in the nation, placing increasing             pressure on local infrastructure such as roads, utilities, and public services; and

WHEREAS, current state law requires local governments to spend collected impact fees within three (3) years, limiting their effectiveness in funding long-term infrastructure projects;       and

WHEREAS, rising construction costs and delays in materials and labor make it harder for local governments to complete major infrastructure projects within the current three-year limit;          and

WHEREAS, as a result, very few counties in South Carolina impose impact fees, despite their    value in helping fast-growing communities manage the cost of growth; and

WHEREAS, impact fees are a fair and responsible funding tool that ensures the cost of new        residential and commercial development is borne by those who create the demand, rather       than by existing residents and businesses; and

WHEREAS, House Bill H3165, introduced in the South Carolina General Assembly, proposes    key reforms to improve infrastructure planning by extending the allowable time to spend          impact fee revenues from three (3) to seven (7) years;

NOW, THEREFORE, BE IT RESOLVED, that the Lexington County Republican Party           supports the passage of House Bill H3165 and urges the South Carolina General      Assembly to adopt this reform that extends the impact fee expenditure timeline to give       local governments the flexibility and tools needed to plan for growth and invest in         essential infrastructure.

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 Approved unanimously on August 4, 2025 by the LCRP Executive Committee.