Category Archives: 2017 legislative issues

LEGAL TREND. Flipping Right of Way Property. Eminent Domain Compensation. What you Need to Know from Dallas.

The alleged crimes: “fraud by getting inside information from the Texas Department of Transportation to buy cheap land alongside Interstate 35E and then flip it to the state at inflated prices”

How was the land value increased? land underdevelopment was considered to be a higher value 

The “profit” generated by these sales to TXDOT? $12.6Million

Dallas Morning News | Second Dallas investor to admit to scheme using inside TxDOT info to flip highway land for profit

What's ALEC saying about eminent domain and high speed rail?

ALEC on eminent domain for high speed rail:

“Of course, a great many public use transportation infrastructure projects ultimately need to use eminent domain to be able to reach completion. Specifically, railroads, including those in Texas, have long had to resort to eminent domain to provide a bene t to the public as have highways and other public infrastructure. And the truth is that trying to build a railroad (or highway) without some sort of eminent domain is nearly impossible. “

“Like the…

Lege Trend. Southern State Wants to Tax Home Share Rentals. 3 Key Bits of Information.

State: Mississippi

The tax proposal on home sharing: 

  • is triggered if a person rents out their home, or a portion thereof for less than 90 days
  • must remit 7 %state sales tax on gross revenue from the rental and related charges
    • other charges include: such as soap, coffee, food or other amenities
  •  requires collection and remittance of any applicable local government “hospitality” taxes

Clarion Ledger | Mississippi Dept. of Revenue pushing to tax Airbnb, other rentals like hotels

Private Property Rights Trend. Great Northwest. Sharing Economy Regulations with Ownership Limit.

City: Seattle

The proposed home sharing ordinance:

  • requires hosts to get a short-term rental operator’s license with the city
  • no city restrictions on the number of nights on a primary residence
  • hosts can own 2 properties within seattle under the ordinance

NBC K5 Western Washington | Seattle Councilmember proposes Airbnb regulations

Lege Trend. Eminent Domain & Property Owner Compensation. How Does Texas Measure Up?

Compensation & Valuation:

  • TX + 28 states use the Broad Instruction Approach
    • Broad Instruction Approach provides minimal instruction on compensation
  • 17 states use the Factor Based Approach
    • Factor Based Approach specifically lays out what considerations should be followed by the court in determining the fair market value of the land. 
    • Seeks to ensures that relevant information is considered in every condemnation case 

A consideration for Texas:

Adopting “a Factor Based or Specific…

Eminent Domain. TXDOT. Right of way. Fraud. Forget flipping houses, flip right of way land. 3 pieces informed intel:

What is flipping right of way?  2 investors have been investigated by the FBI for buying right of way near I-35East, and arguing that land delveopment deals increased the land’s value when the land was sold to TXDOT.

What happened to the 2 investors? 

  • 1 entered a guilty plea to one count of conspiracy to commit mail fraud
  • 1 is awaiting trial

The amount garnered from the land transactions?  2 investors received $12.9 million above their purchase price

Dallas Morning News | Dallas man admits…

Eminent Domain Laws Across the US. Attorney Fees. Quick Info. How does Texas measure up?

Attorney Fees:

  • TX awards attorney fees if the condemnor doesn’t make a bonafide offer
  • 40 other states award on a broader basis
    • 4 states use as standard of 110% of condemnor’s offer 
    • Colorado uses a standard of 130% of condemnor’s offer 
    • 2 states use a standard of 120% of condemnor’s offer 
    • 2 states use a standard of 115% of condemnor’s offer 
    • 6 states use a standard of any amount over the condemnor offer
    • 1 state uses a standard of “closer to land owner’s value than condemor’s…

Lege Trend. Private Property Rights in Advertising Your Property. Advertising Replaces Preemption.

State: Utah

How did Utah end up protecting the right to advertise your property on AirBnB? 

  • The legislature left cities and counties with the ability to regulate short term rentals
  • But, the Legislature provided statewide protection by permitting advertising of your property on AirBnB platform. 
  • The advertising provision replaced a preemption provision. 

Utah House Bill 253 (2017) 

Moab Sun News | Rentals bill shifts focus to online advertising