Cities Using Zoning To Avoid Eminent Domain Requirements.
In a recent Wall Street Journal article it was reported that several cities are using their local zoning laws to avoid the requirement of paying private property owners when their property is taken.
Recall that the Fifth Amendment to the US Constitution requires payment to a land owner whenever property is taken for a public purpose.
In contrast, cities such as Dallas, TX and Ridgeland Mississippi are most recent to attempt to use local zoning codes to re-categorize existing uses as undesirable in favor of newer uses that the city deems more desirable. In Dallas a man’s auto repair business will have to be sold to make way for newer uses favored by the City.
In Ridgeland, the property code is being used to close down apartment complexes in an attempt to decrease the supply of rental properties in the city.
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The information on this site may not reflect the most current legal developments, verdicts, case law, code revisions, regulatory updates, private letter rulings or other changes in the law and is not guaranteed to be correct, complete or up to date. The information on this site should not be taken as a promise, guarantee or indication of future results or benefits.
IRS CIRCULAR 230 NOTICE. We are required by Treasury Regulations (Circular 230) to inform you that, to the extent that this communication concerns federal tax issues, this communication (including links, attachments and enclosures) was not written or intended to be used, and cannot be used, for (1) avoiding federal tax penalties, or (2) promoting, marketing, or recommending to another party any transaction or matter addressed herein.