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Proposition 7

The ballot will read: The constitutional amendment to allow governmental entities to sell property acquired through eminent domain back to the previous owners at the price the entities paid to acquire the property.

Background: The Constitution prohibits the government from taking a person’s property for public use without giving the owner fair compensation (through a process called “eminent domain”). Sometimes, the government takes land under eminent domain but then never constructs the project for which the land was taken. When this happens, the owner who gave up the property is sometimes allowed to buy the land back, but must pay fair market value at the time the land is repurchased. Proposition 7 would allow owners to buy land back for the price they received when the land was originally taken, rather than at the current value.

For: Since property often increases in value over time, Proposition 7 will make it easier for an original landowner to afford to repurchase land that was taken by the government through eminent domain, but was never put to public use. The amendment would discourage governmental entities from taking private land without specific plans for use of the land.

Against: Owners are fully compensated for property taken through eminent domain. Once this occurs, the owner gives up all rights to the property, and also no longer faces any risk of the property losing value in the future. If the owner can then repurchase the property at the original price, he could resell the property to new owners at market prices and make a windfall, without having had to pay property taxes or other costs for the years the government owned the property.

For the exact wording of the changes to the Constitution
that would occur if this proposition passes,
CLICK HERE.
Words to be added to the Constitution will be underlined.
Words to be removed, if any, will be [struck through].

For a more detailed analysis of this proposition
from the House Research Organization,
CLICK HERE.

For the full 43-page House Research Organization report
on all of the propositions,
CLICK HERE.

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9/20/07