A building permit application fee is calculated at $0.75 per $1,000 of construction value with a minimum fee of $150. What is the permit fee for a project valued at $85,000?
Correct Answer
B) $150.00
The calculated fee would be $85,000 ÷ $1,000 × $0.75 = $63.75, but since this is below the minimum fee of $150, the minimum fee applies.
Why This Is the Correct Answer
The correct answer is B ($150.00) because permit fee calculations must always consider minimum fee requirements. Even though the calculated fee based on construction value is only $63.75, the minimum fee of $150 takes precedence when the calculated amount falls below this threshold. This is a common feature in municipal fee structures to ensure administrative costs are covered regardless of project size.
Why the Other Options Are Wrong
Option A: $63.75
Option D ($637.50) suggests an error in the calculation, possibly multiplying by 10 or using an incorrect rate, and doesn't reflect proper application of the fee structure.
Option C: $637.50
Option C ($212.50) appears to add the calculated fee ($63.75) to the minimum fee ($150), which is incorrect methodology - you apply either the calculated fee OR the minimum fee, whichever is higher.
Memory Technique
Remember 'MIN-WIN' - when the MINimum is higher, the minimum fee WINs over the calculated amount.
Reference Hint
Florida Building Code, Chapter 1 - Scope and Administration, Section on Permits and Fees
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