City of Idaho Falls’ Updated Impact Fees Go into Effect June 1

The following is a news release from the City of Idaho Falls:

IDAHO FALLS, Idaho (KIFI) — The City of Idaho Falls is notifying developers, builders, and the public of upcoming changes to the City’s residential impact fee assessment structure that will take effect June 1, 2026.

Impact fees help fund the infrastructure and public facilities needed to support new development, including parks, transportation systems, and public safety facilities. They help ensure growth pays for growth, rather than shifting the cost of new infrastructure and public facilities onto existing taxpayers.

Idaho Falls first adopted impact fees in 2022. As part of an update to the City’s impact fee ordinance approved by the Idaho Falls City Council on April 23, 2026, the city will transition from assessing residential impact fees on a per unit basis to a square footage-based assessment structure.

The updated structure is intended to more proportionally assess impact fees based on the size of residential development and anticipated demand for public infrastructure and facilities.

“Idaho Falls continues to experience steady growth, and it’s important that infrastructure planning keeps pace with community needs,” said Community Development Services Director Wade Sanner. “Impact fees play an important role in our city by providing a way for new developments to contribute to the cost of public facilities and infrastructure resulting from growth.”

Impact fees play an important role in helping Idaho Falls plan for and accommodate continued growth while maintaining the level of service residents expect. Projects funded through impact fees include the growth-related portions of the Idaho Falls Police Complex, the northside Fire Station, improvements to Heritage Park, Utah Avenue roadway improvements, the pathway along the Idaho Canal south of Sunnyside Road, and improvements to Holmes Avenue.

Additional information, including the updated ordinance, and impact fee study, is available on the City of Idaho Falls website.