Lee County sends a pro-growth message

It took months of seemingly endless discussion, but Lee County commissioners took the bold step of slashing taxes on new construction for two years by 80%.

By a 4-1 vote on March 12, commissioners cut so-called “impact fees” charged to builders and consumers. For example, people who buy a new home had to pay a tax of $13,000 in Lee County because of these fees.

Commercial construction will benefit from the tax cut, too. For example, hotel developer McKibbon Hotel Group says it is considering building a hotel in Lee County but held off because of the $4,000 to $5,000 per room it would have had to pay in impact fees.

Taxes on new construction haven't generated much revenue in recent years because of the economic downturn. A recent report by the county shows it only collects about $10 million annually. Such impact fees were originally designed to help pay for roads and schools, but they've been negligible compared with property taxes.