Regulatory Takings

09/20/24

“How can the government restrict a property owner’s use of their own land until it’s practically a taking?”

Governments can introduce regulations to control how people use their land. Sometimes so many regulations are introduced that it practically qualifies as government seizure. In the US, these are known as Regulatory Takings. Regulatory takings in the US are entitled to just compensation and are usually determined by a three-part test.

1. The economic impact the regulations have on the person making the claim.
2. How far the regulation has interfered with investment expectations.
3. How the government action was carried out.

An example of a government taking would be government agencies forcing a private canal owner to conform to their expectations.