Supreme Court held no exemption for legislative bodies from ordinary takings rules

Writen by Victoria Munson |

Published: May 1, 2024

Case Study: Sheetz v. County of El Dorado, California

601 U.S. ____ (2024) No. 22-1074

As a condition of receiving his building permit, the petitioner had to pay a $23,000.00 traffic impact fee enacted by the County Board of Supervisors. Petitioner sought relief in the state court and appellate court, alleging that this fee constituted an unlawful “exaction” of money in violation of the Fifth Amendment’s Takings Clause. Both the state and appellate court did not agree with Petitioner that the fee imposed by a legislative act should be constitutionally scrutinized just like those fees imposed by administrators. Petitioner appealed to the Supreme Court who agreed with the Petitioner and remanded the matter back to the state court.

Takeaways:

The Supreme Court held that there is no exemption for legislative bodies from ordinary takings rules.

The State of Illinois already applies the Nollan/Dolan test to legislative permit conditions. This test requires the permit conditions to have an essential nexus to the government’s land use interest and the permit conditions must have rough proportionality to the development’s impact on the land use and may not require the landowner to pay more than is necessary to mitigate the harms resulting from the new development.

About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.

Your Illinois REALTORS® Legal Team