City of Tampa could raise impact fees ahead of changes to state law

With a new law looming that could prevent future fee hikes, the city of Tampa is readying to raise the price of building new developments within city limits. 

The city of Tampa announced Wednesday that leaders are considering a historic increase to its multimodal transportation impact fee, and will host two public workshops to discuss its plans. 

Tampa’s City Council will host the public workshops to discuss the increase, each at 9 a.m. One will be on Sept. 25 and one Oct. 30, both in City Council Chambers at Old City Hall at 315 East Kennedy Blvd. in downtown Tampa. 

The city’s multimodal transportation impact fee is a one-time fee paid at the time a building permit is issued and is meant to offset the financial impact a new development has on public infrastructure. The money can fund projects such as infrastructure enhancements, transportation improvements, or public services like new schools and utilities that support the new development. The money can’t be spent on maintenance or repairs. 

According to the city, Tampa’s impact fee hasn’t increased since 1989. However, a new Florida law that goes into effect in 2026 will make it harder for municipalities to increase impact fees. 

Florida’s current law only allows municipalities to increase impact fees once every four years and caps that increase at 50%. To increase the fee by more than 50%, the municipality must prove its facing “extraordinary circumstances.” That process requires a special study, public workshops and two-thirds vote of approval by the city council. 

Once the new law goes into effect Jan. 1, though, the option to argue an “extraordinary circumstance” will only be available to those local governments that have already increased fees in the past five years. The law – SB 1080 – also states any fee increase will require a unanimous vote of approval by the governing body, and the increased fee must be phased in over a period of two to four years. 

Courtesy image

Tampa first adopted a transportation impact fee in 1986 and the last time it was updated was in 2015, when city officials changed the fee structure to include the multimodal fee, covering additional transit modes. 

“Updating the fee would provide critical funds to help Tampa keep pace with population growth, inflation and construction costs, travel demand and other needs, which fall within the fee structure,” the announcement from the city of Tampa says. 

According to city officials, Tampa is indeed facing “extraordinary circumstances” after years of population and job growth, as well as construction costs increasing faster than general inflation. The number of roadways operating at above available capacity are increasing while alternative funding sources are decreasing, officials say, increasing the demand for overall multimodal travel options. 

The city has welcomed in more than 100,000 new residents since 1990, the announcement says, bringing the current population to more than 414,500. The city’s comprehensive plan anticipates bringing in 100,000 more people, along with 250,000 new jobs, by 2045.