US Supreme Court Confirms That the Federal Takings Clause Applies to Legislative Land-Use Permit Conditions

In April 2024, the United States Supreme Court issued a unanimous opinion confirming that the Fifth Amendment’s takings clause applies to legislative land-use permit conditions.  In Sheetz v. County of El Dorado, the Court examined whether a California statute that required landowners to pay a traffic impact fee as a condition of receiving a residential building permit violated the Fifth Amendment.  The court below ruled that the impact fees did not violate the Fifth Amendment, concluding that legislative exactions—as opposed to ad hoc administrative exactions—were permissible.  The Supreme Court disagreed and held that legislative exactions must be carefully scrutinized and that they can provide a basis for a takings claim.  The Court’s decision could have far-reaching implications for property owners who have been deprived of just compensation by legislation purporting to allow the condemnors to take property without paying for it.