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Lynda/WA
09-10-2001, 05:59 PM
Should the government have to pay landowners when it enacts laws, policies ect that decrease the value of land? Each state varies on their policies and it sounds like even local areas vary. Oregon voters passed a measure that would reimburse landowners. It's currently before a judge.

This was a topic on the radio today. Enviromentalist groups say it would prevent laws from being passed that would create restrictions on land and home owners. Or that it would prevent laws from being enforced. The reasoning is that mainly local governments would need to pay out money.

Here are some examples that people called in from their own experiences. People would buy land and see if it was in designated flood areas or classified as wetlands. After they owned the land it would be rezoned. Being in a wetland essentially makes your land useless. When we were looking at houses one of the few we viewed was butressed up against a wetland area. As soon as we found that out we left.

Another example - A man bought a couple of acres in a farming area. The law said that to build a house in the farming area you need to earn 40,000$ from your crops. The purpose is to keep the land farmland and not have people building *hobby* farms. Regardless if you had 1 acre or 100 federal regulations said you needed to show you could earn that amount to prove it was a farm. He filed the papers to be allowed to build his home. They said he needed to already be farming and prove he was already earning that. He asked to file a protest. First they said he couldn't then they said that if he did they would tie him up in court for 30 yrs. Then the income requirement went up from 40,000 to 80,000. Because they changed the rules after the fact he may not be allowed to live on his land that he is farming. BTW according to federal regs he could.

Another example that comes to mind is my parent's land. They have to allow a power line run through their land. Because of it they have were unable to sell (3 buyers backed out when the power line decision was made). They aren't allowed to use this land, have to pay taxes on it, and will have problems selling it for less money. Should the government have to pay them for making a decision that costs them money?

JeffP/MN
11-10-2001, 12:39 PM
I read your post and about fell over. I know most people are not interested in this sort of stuff which is fine, but I love it. Property rights, capitalism, free trade, etc.

In answer to your question, I think that government should compensate owners for the impact of government restrictions on land use if the restriction results in a loss of value above some certain threshold (perhaps 20% of value). I don't think it is reasonable or realistic to expect govt to reimburse property owners for every negative impact.

Of course, environmentalists disagree. They rightly point out that it is not fair for corporations to pollute and make society clean up their mess, but now that the shoe is on the other foot it is a whole different deal. Environmentalists expect certain unlucky property owners to foot the bill for their protection of endangered species and other environmental causes.

Furthermore, when a state like Oregon passes Measure 7 to compensate property owners the environmentalists have a fit and point out that it will cost local governments 5B per year. I am not if it ever occurs to them that it means that property owners have suffered a 5B loss.

BTW, I debated this with someone at another site whose counterpoint was that it amounts to corporate welfare since most land developers are businesses. She thought if we compensated land owners, developers would buy up land in the hopes that they could get government to pay them for it.

Jeff