Building permit fees are charges municipalities collect when property owners apply for permission to construct or renovate buildings. Fees are typically calculated based on project value, square footage, or building type, with larger and more complex projects paying more. Fee revenue funds the building department that reviews plans and conducts inspections. Permit fees should relate to the actual cost of providing the service—municipalities cannot use permit fees to generate general revenue beyond their regulatory costs. Fee schedules are publicly available so applicants can estimate permit costs when planning projects. Some municipalities offer reduced fees for affordable housing or other priority developments.