"the city uses the permit information to track the increase in value to tax at the new rate"
I fixed that rather easily with a phone call. The city's so called "value" of my home was nearly $40,000 higher than the appraisal from the bank. I called the city and the county tax assessor's office quickly smarted off at me over it replying they were NOT changing the valuation. I replied, "That's totally cool with me! I don't necessarily want you to change the valuation of the property and lower my taxes. What I require you to do is call my bank and explain to them that they have massively undervalued my home and as such I need the extra valuation figured back into my home value in case I ever need to take out a second mortgage." They replied that was absurd. I said, "Well then, what I am telling you is the APPRAISED value is $40,000 less than the TAX value, and I don't care HOW you and the bank fix this, but the TWO are GOING to meet OR BOTH of you will speak to my attorney." The city sent me a refund within days.

Turns out they decided I may have a point.
I inspect for a living. This whole thread is absurd. I also live in SC. Paying people to turn in others to collect fee's is a return to 1940's Germany. In the cities mentioned, this is about money and NOTHING more. It's not about safety in the least. It's scummy, immoral, and ridiculous at BEST!! I cannot possibly express how much this practice disgusts me!
My father was going to build a home in Beaufort SC. He inquired about the building codes. Blah blah this, blah blah that...gotta build to hurricane standards, yadda yadda. Ok, I'll give it the benefit of the doubt; they may have a point. But why is it that I can buy a mobile home and park it nearly anywhere there with no "above and beyond" standards???? That immediately screams at the top it's not about insurance! (And lets face it, that's what PUSHES "hurricane" standards - although as I recall theirs are far beyond "normal" hurricane standards - that was quite a few years ago and long before I started inspecting)
In the long run...methinks the local building and supply had ties with the county. All said and done, after much deliberation over cost and justification, he bought a double wide, raised to the level of a home, and added a "county" code compliant (no bearing on NFPA or IBC) front and rear porch. He probably saved at least $50-60,000 for the same square footage as building outright, and it looks pretty darned close to a normal house. Inside, meh not so much. But he's satisfied with it and that's what matters to him. I suppose I could put up with changing a few doors and small stuff to save that much myself. It's legal and legit. So who's morally wrong? The county, or he? I say the county.
These very fees are what is turning this country back into the very country we started a war to free ourselves from. Food for thought.