Impact fees are charges levied on new development to fund the infrastructure required to serve that development—essentially equivalent to development charges in Canadian terminology. The fees address the principle that new development creates demand for roads, water systems, parks, schools, and other infrastructure, and should contribute to these costs rather than relying entirely on existing taxpayers. Impact fees are calculated based on expected infrastructure demands generated by different development types and are typically charged at building permit issuance or development approval. The term "impact fees" is more common in American planning literature, while Canadian municipalities typically use "development charges," "development cost charges," or "levies." Regardless of terminology, these fees aim to ensure growth pays for growth, though debates continue about appropriate fee levels, what costs should be included, and how fees affect housing affordability.