Tax Foundation: Eminent Domain Not Worth Its Salt

Thousands of years ago salt was a valuable commodity. Empires were built on salt.

Today, the Tax Foundation uses a George Mason University Eminent Domain Paper to empirically state that eminent domain is not worth it. The Tax Foundation highlights that eminent domain has a negative relationship with economic revenue growth. “The gamble against private property rights rarely pays off.”  

Hear that sound? It’s the printers of private property rights advocates printing this paper in bulk for legislators. [Tax Foundation] 

Private Property Rights Proponents Will Memorize this Paper

Odds are high every member of the Texas Legislature will receive a copy of this George Mason University Mercatus Center Paper, “Takings and Tax Revenue: Fiscal Impacts of Eminent Domain.”

This academic paper details the use of eminent domain and resulting impact to government. [Synopsis of the Eminent Domain Paper for 2015] [Full Paper on Eminent Domain]

 

RealClearPolicy Asks: Does Eminent Domain Raise Revenue?

The meat of this article is that private proeprty rights are the foundation for the market economy. The authors then work their way through the landmark 2005 Kelo case and note that Kelo’s property was never used for the economic development purpose for which it was taken. But rather, Kelo’s property was used for refuse from 2011 hurricane Irene. 

RealClearPolicy also highlights the 2014 Economic Freedom of the World Report that the U.S. fell to 36th for its legal system and private property rights.   [Real Clear Policy]

Will a Fracking Ban Lead to Inverse Condemnation Law Suits?

Merrill Matthews writes that the proposition to ban fracking within the city limits of Denton has broader implications. The ban would fuel a public relations campaign for environmentalists. The ban would also give rise to inverse condemnation claims for property owners to argue that the ban denied them full use of their property to earn royalties. It’s a sticky situation. [Dallas Morning News]

TX Supremes Say Hello to Inverse Condemnation

Briefing is underway for a controversial groundwater case before the Texas Supreme Court. A pecan farmer was denied permits to water his pecan trees by the Edwards Aquifer. The pecan farmer argues the denial of the permit was a taking of his property. For all you land use lawyers, yes, the land owner is claiming an inverse condemnation. [Bragg v. Edwards Aquifer Authority] 

Refreshing Recollection: There’s another inverse condemnation case before the Texas Supreme Court about billboards in Houston. 

 

Compensation: Business Goodwill

Obtaining eminent domain compensation for the loss of business goodwill is tricky. Just ask the business owners along 183 in Austin. When 183 was raised to above street level, businesses lost foot traffic. These businesses claimed a loss of goodwill, but the Texas Supreme Court disagreed. In California, businesses can obtain compensation for a loss of business goodwill, not all businesses owners are as lucky. [JD Supra]

2013 Refresher: Common Carrier Point of Order

The Railroad Commission is in the midst of controversial rule making about which entities qualify as common carriers, because of last session’s HB 2748.

Texas needs to move its rich oil and gas resources around the state and country. Moving oil and gas to and fro requires traversing land. Land is owned by private individuals who love their private property rights, which makes getting access to build pipelines complicated. In 2013, a bill tried to address this issue. But,many private property right activists viewed HB 2748 as harming private property rights.  HB 2748 was killed on a very elegant point of order and never re-emerged again. 

The author of HB 2748 has retired from the Legislature, but the issue will be back for round 2 in 2015. Private property rights activists are engaged now more than ever before. Hold onto your hats it will be a bumpy ride.  [HB 2748 (2013)] 

 

North Texans Not Happy Campers with Private Toll Road

Local governments are paying attention to the robust public input on a North Texas private toll road project by the Texas Turnpike Corporation. To translate lawyer speak- robust public input means angry voters. This week the town of Wylie called a special council meeting  & voted to OPPOSE a private toll road, which gives the private corporation eminent domain authority. Texans don’t like private toll roads. Texans dislike private companies using eminent domain & building private toll roads more.[NBC DFW]