On November 14, 2016, Williamson County commission voted 22-2 to approve the Education Impact Fee Study, which puts a one-time fee onto new home construction in the county.
The need for the fee comes from the projected growth of Williamson County doubling its population by 2040 and needing approximately 12 new schools in the next 5 years. Projections have been made of a need for up to $500 million in the next 10 years for new schools for students.
But how will this new tax affect county residents? Here’s how you could be impacted by Williamson County’s new growth.
You Will Be Charged a Fee for New Home Construction in Williamson County
Effective March 1, 2017, all new residential housing permits will be charged 50% of the proposed fee for new housing in Williamson County. By September 2017, you will be charged 100% of the fee. New homes in the Williamson County School (WSC) district will pay more than new homes within the Franklin Special School District (FSSD), as this district already has a tax.
“Typically all of these expenses will be passed on to the consumer so for individuals purchasing a new home, it will cost them that much more than prior to the impact fee going into effect. Since it only affects new construction, then homes already built but are for sale will be less expensive than a new comparable home,” comments Franklin, Tennessee’s Padgett Business Services owner Greg Lemons, CPA.
The Fee Will Vary Based on Size and Location
So what exactly are the projected fees for new home construction in Williamson County? The fee varies based on where your home is being built and how large your home is.
If you’re building in the WSC district:
1,399 square feet or less: $2,827
1,400 – 1,890 square feet: $5,317
1,900 – 2,399 square feet: $7,220
2,400 – 2,889 square feet: $8,788
2,900 – 3,399 square feet: $10,074
3,400 square feet or more: $11,210
If you’re building in the FSSD:
1,399 square feet or less: $1,145
1,400 – 1,890 square feet: $1,914
1,900 – 2,399 square feet: $2,502
2,400 – 2,899 square feet: $2,993
2,900 – 3,399 square feet: $3,386
3,400 square feet or more: $3,745
Homebuyers Will Be Affected
Although the money generated from the Education Impact Fee will be used exclusively to build new schools for the county, homebuyers, developers, and realtors alike are all likely to be affected. Rather than a developer paying the fee, the homebuyer could be stuck with this when purchasing a newly constructed home. Officials are attempting to distribute the sharing of the new growth throughout the county in order to fund the much-needed schools for the increasing number of students.
Are you planning on building a home in Williamson County next year? If so, consider the Education Impact Fee Study tax and how it will affect you because as of March 1st, you’ll be required to pay 50% of the proposed fees for your new home in Williamson County. The price of funding new schools isn’t cheap, so consider purchasing an already existing home when moving to the county.