Denton charges standard water, wastewater, and roadway impact fees on new dwelling units under authority of Texas Local Government Code Chapter 395. Updated Roadway Impact Fees took effect January 1, 2025. Water/wastewater impact fee updates were considered in August 2025. ADUs sharing the primary dwelling's water and sewer service avoid most impact fees because separate water or sewer service for the ADU is not allowed under the Denton Development Code.
Denton assesses impact fees under authority of Texas Local Government Code Chapter 395, which permits municipalities to recover the cost of capital improvements attributable to new development. Updated Roadway Impact Fees adopted by City Council took effect January 1, 2025, ensuring future development contributes to roadway improvements identified in Denton's 2022 Mobility Plan. Water and wastewater impact fee updates were considered at City Council in August 2025 in response to capital needs identified in the city's $2.2 billion capital improvement plan. Importantly for ADU owners, the Denton Development Code prohibits separate water or sewer service for the ADU - it must share the primary dwelling's tap. This typically eliminates new water and wastewater impact fees because no new service connection is created. Building permit fees, plan-check fees, and trade permit fees (electrical, plumbing, mechanical, gas) still apply, billed through Development Services at 401 N Elm Street. Atmos Energy provides natural gas; Denton Municipal Electric (DME) provides electricity - both charge their own service-extension fees separately. Texas has no statewide ADU impact-fee waiver analogous to California Gov. Code § 65852.2(f). Denton does not have a dedicated ADU fee-waiver program. Roadway impact fees may still apply on net new dwelling units in some service areas even where utility taps are shared.
Failure to pay impact fees results in permit denial or revocation. Building or occupying an ADU on an unauthorized utility connection violates the Denton Development Code and the adopted plumbing code. Texas Local Government Code § 54.001 authorizes civil penalties up to $500 per day for zoning violations and $2,000 per day for building/fire violations.
Denton, TX
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Denton, TX
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Denton, TX
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Denton, TX
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Denton, TX
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Denton, TX
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