Fees to build a home in Lexington set to go up July 1. Find out why and how much.

It will likely cost more to get building permits for new home construction come July 1.

The Lexington-Fayette Urban County Council voted unanimously Tuesday during a council work session to move the new building permit fee schedule to the council’s agenda. A final vote on the fee increases will be at its June 20 meeting, which is also the final vote on the budget for the fiscal year that begins July 1. The fees are based on price per square foot or a minimum fee, whichever is less. Under the proposed changes, many of those minimum fees will increase. There will be some minor increases to some commercial building fee permits, said Dewey Crowe, the director of building inspection.

For example, minimum fees for a 2,000 square foot house will go from $50 to $200, Crowe said.

“That will bring the fees more in line with the cost to the government to process the permits,” Crowe said. That cost includes staff time to review building plans and sometimes conduct multiple inspections.

The changes are expected to generate an additional $400,000 in fees next year. If passed by the council as expected, the changes would take effect July 1, Crowe said. The proposed $379 million budget assumes the residential building permit fees will be increased.

Crowe said the city has made some changes to its complex building permit fee structure over the years but this is the first time there has been a major overhaul of its fee structure in more than a decade.

Still, the additional $400,000 will not cover the government’s entire cost to issue building permits, Crowe said.