NIBCA Sues Hayden Over Cap Fees

The North Idaho Building Contractors Association has filed suit against the city of Hayden, asking that the 1st District Court declare Hayden’s Sewere Capitalization Fee to be an unauthorized tax and, therefore, unconstitutional under the Idaho Constitution. In the lawsuit filed Thursday, the NIBCA said that capitalization fees in Hayden have risen dramatically in recent years, adding: “Members of NIBCA, being greatly concerned about the impact and chilling effect the capitalization fees have on the construction industry, pointed out the legal deficiencies of these fees and attempted to work with the city of Hayden to discuss and resolve its members’ concerns.” The NIBCA claims that Hayden is violating state law by using the capitalization fees for future expansion of the sewer system rather than for the required purpose of operation and maintenance of the system. You can read the lawsuit here and here .

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