"Growth paying for growth" is the principle that new development should fund the infrastructure required to service it, rather than burdening existing taxpayers with costs created by newcomers. This principle underlies development charges, development cost charges, and similar levies that collect fees from developers (ultimately passed to purchasers) to fund roads, water systems, parks, and other infrastructure serving new areas. The rationale is fairness: people moving to new developments benefit from new infrastructure and should pay their share rather than having existing residents subsidize growth through property tax increases. Implementation is debated: What costs are genuinely growth-related versus benefiting everyone? Are development charges set appropriately? Do high charges worsen housing affordability? The principle guides development financing policy, though the extent to which growth actually pays for growth varies by jurisdiction and depends on charge levels, exempt developments, and what costs are included.
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Growth Paying for Growth