Chattanooga, TN Accessory Structures: ADU Impact Fees (2026)

Chattanooga has no ADU-specific impact fee. The Land Development Office charges standard building permit fees calculated from construction valuation, plus separate plumbing, electrical, and mechanical permit fees. Water connections come through Tennessee American Water (a private utility serving Chattanooga); tap fees apply only when a new water service is required, which most ADUs avoid by using the existing service. Sanitary sewer is provided by the City of Chattanooga's Wastewater Department; sewer capacity fees apply on new connections per the published fee schedule and are typically several hundred to several thousand dollars based on fixture count. Hamilton County does not impose adequate facilities or school impact fees on residential construction; school capital is funded through county sales tax. Stormwater fees through Chattanooga Public Works apply based on impervious surface added. Property taxes are reassessed by the Hamilton County Assessor of Property after construction. Form-based code districts use the same fee structure.