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U.S. Supreme Court: Legislative Impact Fees Can Be Unconstitutional Exactions Too

Last week, the United States Supreme Court issued its opinion in Sheetz v. County of El Dorado, California, in which the Court held that for the purpose of a takings claim there is no distinction in whether permit conditions are imposed on a development through the legislative process or administratively on a project-by-project basis. While the case presents a relatively limited holding, it is now settled that regardless of the process by which a government imposes an impact fee, it must share an essential nexus with the government’s stated purpose and be roughly proportional to offset a development’s impacts on that purpose.

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