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2025 Impact Fee Deferral Report

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2025 2025 Impact Fee Deferral Report Final 3374Da84 Dafe 442D A370 2C3C5D8B

Summary

The 2025 Impact Fee Deferral Report, an annual Washington State Department of Commerce report to the Legislature under RCW 43.31.980, dated Nov. 7, 2025 and described as the eighth annual report. It explains the impact fee deferral program established by Chapter 241, Laws of 2015 (SB 5923), under which deferrals can last no longer than 18 months. Commerce surveyed 310 counties, cities and towns; 109 responded, a 35.2% response rate, and seven reported issuing deferrals. Table 1 reports 323 deferrals requested and 323 issued for 2024 across fire protection, parks, schools and transportation fees, with one school fee deferral not paid fully or on time. Tables 2 to 5 break the deferrals down by jurisdiction for each fee type.

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“2025 Impact Fee Deferral Report.” Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-2025-impact-fee-deferral-report-final-3374da84-dafe-442d-a370-2c3c5d8b/, SHA-256 12f7a6c61cc65d859827ce0f02581de2c86ca3a0ee2ab739f305b529143b8a83.

Full text

2025 Impact Fee Deferral Report

Annual report pursuant RCW 43.31.980




                                       Nov. 7, 2025

                                       Report to the Legislature
     LOCAL GOVERNMENT DIVISION
     GROWTH MANAGEMENT
     SERVICES                          Director Joe Nguyễn

v4
Acknowledgments
Washington State Department of Commerce
Mark K. Barkley, Assistant Director
Local Government Division

Growth Management Services
Dave Andersen, AICP, Managing Director

Valerie Smith, Deputy Managing Director

Paul Johnson, Operations Manager

Katherine Mitchell, Program Manager

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available on
request in other formats. Please call 360-725-4000 with
your request.




2025 IMPACT FEE DEFERRAL REPORT
Table of contents
Introduction ........................................................................................................................................................4

2024 deferral data...............................................................................................................................................5




2025 IMPACT FEE DEFERRAL REPORT
Introduction
Authorizing legislation
Per RCW 43.31.980, 1 the Department of Commerce (Commerce) must annually report on the deferral process for
impact fees. RCW 82.02.050(3) outlines the authority and limitations for local governments to impose impact
fees. 2 The reporting requirements include:

    • The number of deferrals requested of and issued by counties, cities and towns
    • The number of deferrals that were not fully and timely paid
    • Other information as deemed appropriate

Commerce published its first report in 2018. This is the eighth annual report.

Background
During the 2015 session, the Legislature passed Chapter 241, Laws of 2015 (SB 5923), which, in part, established a
deferral program for impact fees.3 Local governments fully planning under RCW 36.70A, the Growth Management
Act, can collect impact fees for fire protection facilities, transportation facilities, parks and schools. Local
governments can choose to charge different rates for different classes of construction, such as residential,
commercial and retail. Additionally, local governments may opt to collect impact fees on only a single type of
construction.

Except under specific circumstances, a local government must refund fees not expended or dedicated within 10
years of collection. All local governments imposing impact fees were required to establish an impact fee deferral
program by Sept. 1, 2016.

The deferral program applies to builders. Local governments can allow for a minimum of 20 deferrals of single-
family homes built per year by a builder and have the option to permit more. The deferral can last no longer than 18
months. At a minimum, the local government must offer builders at least one of the following options to defer
collection of the impact fee payment:

    • Payment of the final property inspection
    • Issuance of a certificate of occupancy or similar certificate
    • Closing of the first sale of the property occurring after issuance of the applicable building permit

Report methodology
Commerce collected data for this report in August and Sept. 2025. The survey included 18 questions. Planning
directors, permitting departments and city administrators were notified of the survey by direct email and Growth
Management Services’ monthly Planners’ Newsletter.

Survey responses
Commerce sent the survey to 310 counties, cities and towns. Of those, 109 responded, a 35.2% response rate.
Fifty-six respondents reported requiring impact fees, and seven reported issuing deferrals. All deferral requests
were granted, and only one community did not have deferrals fully paid or submitted on time.



1 Washington State Legislature, “RCW 43.31.980 – Impact fee annual report. Retrieved,”
2 Washington State Legislature, “RCW 82.02.050 – Impact fees: Intent and limitations,”
3 Washington State Legislature, “Session Laws of 2015, Senate Bill 5923, Chapter 241, Section 4.”




2025 IMPACT FEE DEFERRAL REPORT
2024 deferral data
Table 1: Total deferral by type of impact fee
                                                                            Deferrals not paid fully or on
Type of impact fee           Deferrals requested         Deferrals issued
                                                                            time

Fire protection facility     5                           5                  0


Parks                        176                         176                0


Schools                      17                          17                 1


Transportation               125                         125                0


Total impact fees            323                         323                1




Table 2: Fire protection facility impact fee deferrals
                                                                            Deferrals not paid fully or on
Jurisdiction                 Deferrals requested         Deferrals issued
                                                                            time

City of Redmond              5                           5                  0


Total deferrals              5                           5                  0




2025 IMPACT FEE DEFERRAL REPORT
Table 3: Park impact fee deferrals
                                                                     Deferrals not paid fully or on
Jurisdiction                Deferrals requested   Deferrals issued
                                                                     time

City of Ridgefield          147                   147                0


City of Duvall              10                    10                 0


City of Redmond             5                     5                  0


City of La Center           5                     5                  0


City of Bellingham          4                     4                  0


City of Puyallup            4                     4                  0


City of Milton              1                     1                  0


Total deferrals             176                   176                0




Table 4: School impact fee deferrals
                                                                     Deferrals not paid fully or on
Jurisdiction                Deferrals requested   Deferrals issued
                                                                     time

City of Redmond             5                     5                  0


City of La Center           5                     5                  0


City of Bellingham          4                     4                  0


City of Ridgefield          2                     2                  0


City of Milton              1                     1                  0


King County                 0                     0                  1


Total deferrals             17                    17                 1




2025 IMPACT FEE DEFERRAL REPORT
Table 5: Transportation impact fee deferrals
                                                                    Deferrals not paid fully or on
Jurisdiction               Deferrals requested   Deferrals issued
                                                                    time

City of Ridgefield         96                    96                 0


City of Duvall             10                    10                 0


City of Redmond            5                     5                  0


City of La Center          5                     5                  0


City of Bellingham         4                     4                  0


City of Puyallup           4                     4                  0


City of Milton             1                     1                  0


Total deferrals            125                   125                0




2025 IMPACT FEE DEFERRAL REPORT


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