Q May a municipality adopt an ordinance establishing an economic development program that waives and/or reduces building permit fees, sewer tap fees, and water tap fees for a certain geographical area, certain types of businesses, and certain project sizes provided that all persons and entities within the particular class of customers are treated equally?

A Yes, the municipality may adopt an ordinance authorizing it to waive municipal fees for the purpose of providing economic incentives to promote economic development, provided that such an ordinance has been properly drawn and sets forth the conditions under which a waiver might be granted. Such waiver must ensure that all persons or entities within a particular class are being treated equally and that its application is not done in an arbitrary and capricious manner. (Attorney General’s Opinion to Manley, March 9, 2018)