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

Memphis has no Tennessee LGC-style impact-fee program for residential development. Construction Code Enforcement charges building permit fees scaled to estimated construction cost: roughly $6 to $8 per $1,000 of valuation plus base fees, with separate plumbing, electrical, mechanical, and gas permit fees each running approximately $50 to $200. Memphis Light Gas & Water (MLGW) - the city-owned utility - charges tap and connection fees only if a new water, sewer, gas, or electric service is required (most ADUs share the principal house's existing services, avoiding new tap fees); when needed, tap fees run several thousand dollars depending on meter size. Shelby County does not assess a separate impact fee. Stormwater management fees through Public Works apply based on impervious surface added (typically $50 to $300 one-time). Property taxes are reassessed by the Shelby County Assessor after construction, increasing based on the new improvement value. Tennessee has no statewide ADU fee-waiver statute comparable to California's Gov. Code 65852.2(f)(3) for sub-750 sq ft ADUs, but Memphis's absence of an impact-fee program means total city-side fees for a typical ADU run only $1,000 to $3,500 - notably lower than fee-heavy Texas or California jurisdictions.