Is Cost Recovery Legal?

The answer is “YES”. The South Carolina Code of Laws contains three statutes (Section 54-21-10, 56-5-4100, 5-7-30) authorizing cost recovery (user fees) in conjunction with an ordinance or resolution by the fire departments governing body.

It is true that some states have banned or restricted cost recovery for some types of incidents. However, it is currently legal in the overwhelming majority of states. “Collectively, case law seems to present the general principle that, where a fee is authorized by statute, issued pursuant to statutory prescription, and proportional to the cost of the service rendered – it will be upheld.”