Consumer Information

SPECIAL REPORT

COCHISE COUNTY

Government Fees & Taxes on New Homes

As of Jan. 2006

	Cochise County	City of Sierra Vista
Building Permit	$ 1,598	$ 2,482
Water Meter	$ 442	$ 442
Wastewater Fee	$ 1,265	$ 1,265
Impact Fee: Parks	$ 1,500	$ 1,500
CAP Replenishment	$ 60	$ 60
City/State sales tax	$ 6,385	$ 7,785
Total Fees	$9,750	$13,534
Extra mortgage money to pay fees	$ 2,687	$ 3,726
Total Cost	$12,437	$17,260

Government fees increase home prices

Government-imposed impact fees, building permit fees, wastewater fees, taxes and other surcharges on new homes total $9,750 in Cochise County and $13,534 in the City of Sierra Vista.

To cover these fees in their mortgages, home buyers pay an additional:

► $61.63 per month in Cochise County

► $85.54 per month in Sierra Vista

Fees represent the “most common occurrence” in each jurisdiction, due to the fact that actual costs can vary within a jurisdiction depending on various land, economic and regulatory conditions. Building permit fees were based on value of construction.

The report used January 2006 data for a typical $210,000 median-priced, 1,740 square-foot, new-built home. Mortgage costs were based on a typical 6.5%, 30-year fixed mortgage.

SAHBA President Edward Taczanowsky said that although these fees are paid upfront by builders, “they are a hidden government tax that is passed on to new home buyers.”

SAHBA commissioned Bright Future Business Consultants and Nathanson Consulting to conduct an independent study of government fees on new single-family construction. © August 2006

Government fees paid upfront by builders.

Passed on to new home buyers.