State High Court Revives Suit Against Housing "Impact Fees"

The South Carolina Supreme Court, in a ruling last week, revived a lawsuit filed by home builders against a school district for so-called “impact fees” on new homes built in the district.

“Because we find issues of fact raised by the complaint that must be resolved before the constitutionality of 2009 Act No. 99 can be determined, we reverse and remand for further proceedings,” Justice Costa Pleicones wrote in the court’s Sept. 11 ruling.

The act permits the school district — in this case, School District No. 2 of Dorchester County — to impose an impact fee to be paid by developers on “new residential dwelling units constructed within the school district.”

The school district’s Board of Trustees adopted the impact fee effective June 23, 2009.

The Home Builders Association of South Carolina and the Charleston-Trident Home Builders Association Inc., each representing home builders, sued seeking injunctive relief and challenging the constitutionality of the act.

The plaintiffs argue the state constitution requires statewide uniformity and limits special legislation.

The school district moved for a judgment on the pleadings, which a circuit court judge granted.

A majority of the state high court reversed the circuit judge’s ruling.

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