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Editorials - Opinion
Tuesday, April 18, 2006 - Last Updated: 8:08 AM 

Property owners should be compensated for loss of land value

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If the state took part of your front yard to widen a road, you would be right to expect compensation for the property that was being appropriated. But what if the state, county or city was completely within the law to take your property without providing any compensation to you? That is happening right now through regulatory takings, which are used every day against the citizens of South Carolina and is one of the issues in the larger property rights debate in the General Assembly.

In South Carolina, property rights are not just a concern for the wealthy - 77 percent of our citizens own their own homes. In most cases, South Carolinians' homes and property are their largest asset and the foundation of their wealth. The public has clearly demonstrated that they want greater property rights protection. It is time for our lawmakers to provide it.

The U.S. Supreme Court expanded eminent domain powers through the Kelo v. New London case and raised a furor among property owners. Fortunately, many S.C. leaders moved quickly to propose legislation that would protect private property from governmental takings.

But South Carolinians continue to face a more common - and more serious - threat in the face of regulatory takings by local governments. Each year, thousands of South Carolina's property owners lose value on their property unnecessarily, which weakens the state's financial base. Under current state law, a property owner cannot receive compensation on a regulatory taking until more than 95 percent of the value of the property is diminished.

Billboards, businesses, farms and homes are related by private ownership and each is regulated through land-use plans that provide a standard of rights and regulations to the property owner. Property owners know what they are getting when they buy the land. Increasingly, we are seeing the rules and regulations changed by local municipalities, which limits the owners' rights and in some cases severely devalues the properties.

In Beaufort County, several long-standing commercial properties were rezoned residential. This has forced many of the business owners to close their businesses or to continue as non-conforming uses, which severely restricts their ability to grow and be profitable. In Greenville County, one couple used their retirement savings to invest in three billboards only to have them removed a short time later, making their investment virtually worthless. In Charleston County, many families have been forced to sell their land after their property was rezoned and they were no longer allowed to divide their land among family members.

In Dorchester County, a local ordinance would force a farmer to include an additional 1,500-foot buffer on his property, which would take 11 acres from his crop land.

It has been said that compensation for regulatory takings is a special interest issue that will destroy the look and character of our great state. But in truth, such a measure would protect all homeowners from losing their most valuable asset to government regulation.

In the recently passed House bill (H.4503), just compensation for regulatory takings could only be claimed if a new ordinance devalues a property, or no compensation would be paid if a variance were given, which is what most property owners want.

Compensation is not permitted for changes being requested by the property owner, recognized historical areas or public nuisances.

Just compensation is only meant as a balance against unfair and burdensome governmental policies. The legislation does not limit or restrict the powers of local and state governments, but rather would ensure fiscal responsibility and accountability when they exercise their power.

If the government wants to take your property to benefit the public, the government should have to pay compensation for it. This is the same sort of accountability we expect from individuals and corporations, and we should demand it of our lawmakers.

Mark Nix

Executive Director

S.C. Landowners Assoc.

1419 Pendleton St.

Columbia