Sheetz v. County of El Dorado

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Sheetz v. County of El Dorado
Seal of the United States Supreme Court.svg
Argued January 9, 2024
Decided April 12, 2024
Full case nameGeorge Sheetz v. County of El Dorado, California
Docket no. 22-1074
Argument Oral argument
Case history
Prior84 Cal.App.5th 394 (Cal. Ct. App. 2022)
Questions presented
Is a monetary exaction imposed by a local government as a condition for a building permit exempt from the “essential nexus” and “rough proportionality” requirements established in Nollan v. Cal. Coastal Comm’n and Dolan v. City of Tigard, simply because the exaction is authorized by local legislation?
Holding
The Takings Clause does not distinguish between legislative and administrative land-use permit conditions.
Court membership
Chief Justice
John Roberts
Associate Justices
Clarence Thomas  · Samuel Alito
Sonia Sotomayor  · Elena Kagan
Neil Gorsuch  · Brett Kavanaugh
Amy Coney Barrett  · Ketanji Brown Jackson
Case opinions
MajorityBarrett, joined by unanimous
ConcurrenceSotomayor, joined by Jackson
ConcurrenceGorsuch
ConcurrenceKavanaugh, joined by Kagan, Jackson
Laws applied
U.S. Const. amend. V

Sheetz v. County of El Dorado (Docket No. 22-1074) is a United States Supreme Court case regarding permit exactions under the Takings Clause. The Supreme Court held, in a unanimous opinion by Justice Amy Coney Barrett, that fees for land-use permits must be closely related and roughly proportional to the effects of the land use – the test established by Nollan v. California Coastal Commission and Dolan v. City of Tigard – even if the fees were established by legislation rather than through an individualized assessment.

Contents

Background and facts

In 2016, George Sheetz, a property owner in Placerville, California, applied for a permit from El Dorado county to construct a manufactured single-family home on a lot. [1] The county conditioned approval of the permit on a "traffic mitigation fee" of $23,420. [2] The fee was authorized by legislation and would be utilized to "fund transportation improvements needed to accommodate growth anticipated by the county's general plan". [3] The fee was dependent on the location of the property and the type of construction. [4] [5]

After paying the fee and obtaining the permit, Sheetz challenged the fee in a trial court, arguing that it violated the Takings Clause of the Fifth Amendment, barring governments from taking private property for public use without just compensation. He argued that the fee failed to adhere to the higher standards of scrutiny set by the Nollan/Dolan test for exactions. Under Nollan/Dolan, if the government intends to condition land-use permits on owners giving up property, it must show that the conditions are closely related and roughly proportional to the effects of the proposed land use. [6] [7] [8]

The California Court of Appeal reaffirmed the trial court's holding and rejected application of the Nollan/Dolan test, ruling that the standard would only apply to adjudicative exactions, not legislatively enacted exactions imposed upon "a broad class of property owners." [9] The California Supreme Court then denied review.

Sheetz appealed the decision to the United States Supreme Court and was granted certiorari on September 29, 2023. [9]

Holding

The case was argued before the Supreme Court on January 9, 2024, and ruled in favor of Sheetz on April 12, 2024. Justice Amy Coney Barrett delivered the opinion for a unanimous court, holding that permit exactions generally authorized by legislation were not exempt from the higher standards of scrutiny applicable to ad hoc exactions set by administrators. Justice Barrett wrote that "there is no basis for affording property rights less protection in the hands of legislators than administrators. The Takings Clause applies equally to both". [10] The case was remanded back to state courts for consideration. The court did not address whether the fee itself was a taking. [11] [12] [2]

In a concurring opinion, Justice Sonia Sotomayor emphasized that the court did not address whether the fee imposed by El Dorado County was indeed a taking if imposed "outside the permitting process", and thus necessarily subject to scrutiny under Nollan/Dolan. [13]

In a concurring opinion, Justice Neil Gorsuch argued that application of the Takings Clause and Nollan/Dolan should not vary depending on the "class of property" impacted by a relevant regulation. [11]

In a concurring opinion, Justice Brett Kavanaugh emphasized that the majority opinion did not rule on the question presented by Gorsuch in his concurrence. [11]

Impact

Permit exactions have often been used by municipalities to offset costs related to new developments. For developers and homeowners, the reduction in impact fees will lead to a decrease in the overall cost of housing. [8] In California in particular, municipalities have often relied on them in lieu of raising property taxes. [2] The National League of Cities advised municipalities that imposition of such fees would now require demonstrating the relationship and relative impact of affected property developments on the community. [14]

See also

Related Research Articles

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Inverse condemnation is a legal concept and cause of action used by property owners when a governmental entity takes an action which damages or decreases the value of private property without obtaining ownership of the property through the use of eminent domain. Thus, unlike the typical eminent domain case, the property owner is the plaintiff and not the defendant.

<span class="mw-page-title-main">Impact fee</span>

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Dolan v. City of Tigard, 512 U.S. 374 (1994), more commonly Dolan v. Tigard, is a United States Supreme Court case. It is a landmark case regarding the practice of zoning and property rights, and has served to establish limits on the ability of cities and other government agencies to use zoning and land-use regulations to compel property owners to make unrelated public improvements as a condition to getting zoning approval, citing the violation of the Fifth Amendment’s Takings Clause.

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References

  1. Egelko, Bob (September 29, 2023). "U.S. Supreme Court agrees to decide legality of fees charged to California homebuilders". San Francisco Chronicle.
  2. 1 2 3 Savage, David G. (April 12, 2024). "Builders may fight 'impact fees' that fund municipal projects in California, Supreme Court rules". LA Times.
  3. Reilly, Shelby (April 12, 2024). "Northern California man wins development impact fees case against U.S. Supreme Court". CBS News.
  4. Kuhn, Bradford; Rubin, Benjamin (April 12, 2024), "Supreme Court Holds that Legislative Impact Fee Programs Can Constitute a Taking", JDSupra
  5. Yeatman, Nicole W. C. (2024-04-14). "The government had George Sheetz 'over a barrel.' He took his case to the Supreme Court—and won". Pacific Legal Foundation. Retrieved 2024-08-26.
  6. Howe, Amy (January 9, 2024). "Court split over California man's takings clause dispute". SCOTUSblog.
  7. Robinson, Kimberly Strawbridge (January 9, 2024). "Supreme Court Appears Likely to Side With Landowners in Fee Case". Bloomberg Law.
  8. 1 2 Hodges, Brian T.; La Fetra, Deborah (July 17, 2024). "Sheetz v. County of El Dorado: Legislatures Must Comply with the Takings Clause". Journal of Law, Economics and Policy, 2024.
  9. 1 2 Pazanowski, Bernie (September 29, 2023). "Supreme Court Accepts Takings Challenge to Land-Use Exaction". Bloomberg Law.
  10. Britschgi, Christian (April 16, 2024). "The Supreme Court Rules Impact Fees Can Violate Your Property Rights Too". Volokh Conspiracy . Reason Magazine.
  11. 1 2 3 Howe, Amy (April 12, 2024). "Court rules for property owner in building fee dispute". SCOTUSblog.
  12. "Sheetz v. County of El Dorado" (PDF). supremecourt.gov. April 12, 2024.
  13. Somin, Ilya (April 12, 2024). "Supreme Court Rules There Is No "Legislative Exception" to the Takings Clause". Reason Magazine.
  14. Dykema, McKaia (April 25, 2024). "Supreme Court Rules on Important Impact Fee Case". National League of Cities.