Anne Arundel County is evaluating updates to its development impact fee structure that would significantly reduce fees for industrial, office and self-storage uses but increase retail fees. The proposal includes adding two new residential fee categories: one for libraries, another for parks and recreation.
Anne Arundel has regularly adjusted the size of the fees based on the Engineering News Record Construction Cost Index. If approved, the proposed changes would be the first comprehensive, study-based update since 2009.
The proposed fee changes are based on a 2024 study by the consulting firm Tischler Bise, which has advised the county since the impact fee was first imposed in 1987. The study evaluates the proportionate growth-related share of infrastructure costs through 2030 and establishes a maximum, legally supported fee for each impact fee category.
In addition to the new residential fee categories, the changes would split the current public safety fee into separate police and fire fees. Updated trip generation rates would be applied to all building use types. That updated data is the primary driver for across-the-board reductions in the transportation fee and increases in the police and fire fees.
For example, the new office impact fee per 1,000 square feet would be $6,951 — a reduction of between $3,270 and $955, depending on the size of the building. Industrial fees would drop to $3,129 from the current $6,214 per 1,000 square feet.
Retail (mercantile) would increase to $17,675 per 1,000 square feet from the current fee of $11,444. The jump in the retail fee is attributed to the updated traffic counts and trip generation rates. Retail and public assembly categories are the only commercial use types that would pay higher transportation fees under the proposed fee schedule.
As the county considers next steps, a calibrated or phased approach may better balance infrastructure needs, economic competitiveness, and long-term growth. For commercial developers and property owners, continued engagement in this process will be critical to ensuring that policy decisions support both infrastructure delivery and a healthy development environment.
The impact fee proposal has been presented to the Planning Advisory Board with legislation expected to be introduced for county council consideration in July.