Gilbert collects system development fees before it issues a building permit. With no building permit, they are due when the water service connection is bought, or before a sewer-only connection is approved. Nothing issues until they are paid, and a change of use or added floor area is charged on the added service units only.
“No building permit, water or sewer connection, or certificate of occupancy shall be issued if a system development fee is not paid as directed in the previous paragraphs.”
- Applies to:
- Owners, developers, tenants and contractors building, expanding or changing the use of a commercial space in Gilbert
- Official fee:
- Amounts are in the Town's Development Services Fee Schedules (cover dated revised 9/15/2026), not in the code; see the tables below
- In force:
- Gilbert Town Code Ch. 10, Art. XI (Ord. 2685, 9-20-18)
- Last verified:
- October 4, 2026, against the official page
Impact and connection fees are the bill that arrives before a Gilbert business can pour a slab or turn on a tap. Section 10-342 does not set the amounts. It sets the moment they are due, and that moment is earlier than most tenants expect: before the permit, not at the final inspection.
What does Gilbert Town Code 10-342 say?
Subsection (a) says the charges are calculated and collected before permission to start work is issued. In order:
- 1Building permit: unless a development agreement says otherwise, fees are paid before the building permit issues, under the current fee schedule for the service area.
- 2No building permit, but a connection: if water or wastewater connections are required, the fees are paid when the water service connection is purchased. If only a wastewater connection is required, they are paid before the sewer connection is approved. Wastewater fees apply if a development connects to the public sewer or, as the town manager or designee determines, is capable of discharging to it.
- 3No permit, no connection, stormwater fee area: a stormwater, drainage and flood control fee is paid when any permit is issued.
- 4Nothing issues until paid: the quote above. A permit issued in error, or work begun without authorization, may be revoked and stopped until the fee is paid in full.
- 5Change or expansion: a permit for a change in building use, added square footage, a change to land use or an added point of demand is assessed on the additional service units, under the schedule for any new use type.
- 6Expired or voided permits: the original permittee renewing pays the difference between the fee paid and the schedule at reissue. A different applicant pays the full fee at the schedule in effect at reissue.
Subsection (b) lists two cases where no fee is owed: the fee was already paid and the permit has not expired or been voided, or the approvals only modify existing development without adding new service units, increasing the impact of existing ones or changing the land-use type to one with a higher fee. If a modification falls short of that, the fee due is the difference. Subsection (c) freezes the schedule: for a commercial, industrial or multifamily development, the schedule in force on the day of final approval of a site plan or final subdivision plat stays in force for 24 months. Subsection (d) lets the town require an alternative fee analysis for a use that does not fit a category.
What do the key terms mean?
- System development fee: the code's term for a fee on new development. Water facilities and wastewater facilities are two of the categories the town may charge, alongside stormwater, library, street, fire and police, and park facilities (10-339).
- Building permit: in Article XI, any permit that authorizes vertical construction, increases square footage, authorizes changes to land use, or provides for the addition of a residential or non-residential point of demand to a water or wastewater system. Our reading is that a plumbing permit adding a point of demand to the water or wastewater system fits this definition.
- Service unit: a standardized measure of consumption, use, generation or discharge for a unit of development.
- Schedule in force: the Town's Development Services fee schedule lists water, resource and wastewater connection fees in one table and system development fees for parks, traffic signals, roads, police and fire in another. The code does not say which table is which fee. Our reading is that the connection fees are the water and wastewater facility fees.
Who does this cover?
Developers, owners and tenants of new commercial, industrial and residential development, and anyone whose permit adds water or sewer demand. It does not apply when the fee is already paid and the permit is live, or when a modification adds no service units, raises no impact and keeps the same land-use category.
What does the Town's schedule show for commercial work?
These are the Town's published amounts, not HQ prices, from the Development Services Fee Schedules (PDF cover revised 9/15/2026). Fees are determined by the property's ultimate use, not a temporary use, and all landscape meters are considered commercial.
| Meter size | Neely service area total | Greenfield service area total |
|---|---|---|
| 0.75 inch | $18,396 | $18,603 |
| 1 inch | $30,721 | $31,067 |
| 1.5 inch | $61,259 | $61,948 |
| 2 inch | $98,051 | $99,154 |
Each total is water resource plus water infrastructure plus wastewater. Meters larger than 6 inches are priced by Meter Services. The nonresidential system development fees are listed per KSF of building: commercial $1,622 parks and recreation, $4,884 traffic signals, $8,379 roads, $3,166 police and $891 fire; office and other services $2,494, $2,015, $3,456, $4,869 and $1,370; industrial $1,201, $907, $1,556, $2,345 and $660.
Quick check: is a fee due now?
| Situation | Fee due? | When |
|---|---|---|
| New commercial building | Yes | Before the building permit |
| Change from retail to a restaurant that adds service units | On the added service units | Before the permit |
| Remodel with no new service units, no higher impact, same category | Not under (b)(2) | Not applicable |
| New landscape meter, no building permit | Yes | When the water connection is purchased |
| Sewer-only connection | Yes | Before the connection is approved |
| Expired permit renewed by a new owner | Full current fee | At reissue |
What does this look like in real life?
A new retail shell. The builder pays before the building permit. If the site plan or plat has final approval, the schedule in force that day can stay in force for 24 months, which matters if the fee table changes before the permit pulls.
A tenant improvement. A remodel that adds no service units, adds no impact and keeps the same land-use category owes nothing under (b)(2). If the project adds service units or moves the use to a higher-fee category, the difference is charged.
The edge case: the permit lapses and a buyer takes over. The original permittee would owe only the difference. A buyer who is not the original permittee, and who did not receive an assignment of the permit rights, pays the whole fee at the schedule current when the permit is reissued.
What should you do next?
- 1Work out your use category, meter size and service area (Neely or Greenfield) on the fee schedule.
- 2Ask whether your project has a final site plan or plat approval date, which starts the 24-month schedule.
- 3Pull the fee schedule and total the connection fees and the per-KSF fees for your building.
- 4Pay through the One Stop Shop portal (OneStopShop.gilbertaz.gov) or call Development Services at (480) 503-6700 to confirm the amount due before the permit.
- 5If the use is unusual, ask about the alternative fee analysis in subsection (d).
What do people get wrong?
- Fees are due at the final inspection. The code collects them before the permit, connection or sewer approval.
- The code sets the amounts. The amounts are in the fee schedule, adopted separately.
- Any tenant improvement triggers a fee. Subsection (b)(2) exempts modifications that add no service units.
- A renewed permit keeps the old fee. A new applicant pays the schedule in effect at reissue.
Gilbert's own text governs; this page explains it.
How Do Other Valley Cities Handle It?
| Where | What applies | Source |
|---|---|---|
| Mesa | A person who obtains a building permit pays the water and wastewater capacity fee when requesting a connection. A new or upsized meter pays it before the city installs the meter. Irrigation-only meters are exempt from the wastewater capacity fee. | Mesa City Code 8-10-13(D), (E), (J) Verified October 4, 2026 |
| Chandler | Fees are paid when the building permit is issued. For an addition, remodel or change of use, the fee is the new development's fee minus the previous development's, and a negative difference is not refunded. | Chandler City Code 38-11(A)(1) Verified October 4, 2026 |
This page explains the rule. The official text at the source above governs.
- Gilbert Town Code 10-334: Definitions (Municode)
- Gilbert Town Code 10-339: Infrastructure improvements plan (Municode)
- Town of Gilbert Development Services Fee Schedules (PDF, revised 9/15/2026)
- Town of Gilbert: Development Services
- Mesa City Code 8-10-13: Water and wastewater capacity fee (Municode)
- Chandler City Code 38-11: Collection of system development fees (Municode)
Commercial Plumbing in Other Cities
- MesaMesa water and sewer capacity fees for a commercial project: City Code 8-10-13 and 5-17-5
- AvondaleAvondale City Code 24-104 and 24-105: grease interceptors, pretreatment plans and the discharge survey
- BuckeyeBuckeye City Code 16-10-2: grease interceptor size, upkeep and records for restaurants
- CarefreeCarefree certificate of occupancy: the $100 Building Safety Inspection before a business opens
- ChandlerCan a Chandler business get an annual permit for repeat plumbing alterations?
- ChandlerHow long does a commercial tenant improvement permit take in Chandler?
More Gilbert Codes and Permits
- Commercial PlumbingHow often must a Gilbert restaurant pump its grease trap? Town Code 66-244(d) and (e)
- Commercial PlumbingDoes every Gilbert business have to file a wastewater discharge questionnaire?
- Commercial PlumbingDoes your Gilbert business need a Class A or Class B wastewater discharge permit?
- Commercial PlumbingWhen does a Gilbert business have to pretreat its wastewater? Town Code 66-234
- Commercial PlumbingGilbert Town Code 66-244: grease removal devices for restaurants and food service
- Commercial PlumbingGilbert Town Code 66-245: floor drains and wash racks at auto shops and car washes
Related Rules and Questions
- Valley-WideWater and Sewer Tap Permits and City Fees, by Valley City
- ChandlerChandler water meter installation fee: 50-9 schedule by meter size
- TempeTempe water tap and development fees by meter size for commercial service
- MesaWho pays for a new commercial water service in Mesa? Main extension, meters and easements under City Code 8-10-3 and 8-10-4
- FAQWhat sets the meter size and capacity fee for a commercial building?
- FAQDoes a change of use trigger plumbing upgrades in Phoenix?
- Commercial Plumbing
