An Act amending Title 26 (Eminent Domain) of the Pennsylvania Consolidated Statutes, in just compensation and measure of damages, providing for compensation for loss of goodwill.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill amends Pennsylvania law regarding eminent domain to provide compensation for the loss of goodwill associated with a business located on property being taken. It requires property owners to prove the loss of goodwill and establishes procedures for determining its value, including the potential use of tax returns for audit purposes. The bill also addresses leaseback agreements and clarifies when compensation for goodwill is due.
Key provisions
- Businesses can now claim compensation for loss of goodwill resulting from eminent domain.
- Owners must prove the loss is directly caused by the taking and not duplicated elsewhere.
- Acquiring agencies can rebut goodwill claims if the loss could have been prevented through relocation efforts.
- Leaseback agreements are addressed, preventing further goodwill accrual during the lease term.
- Tax returns can be used for confidential audit purposes to determine goodwill value.
- The definition of ‘goodwill’ includes factors like location, community value, reputation, and patronage.
Who is affected
- Business owners
- Property owners
- Acquiring agencies (e.g., government entities)
- Boards of Viewers
- The real estate industry
Notable changes
- This bill introduces compensation for loss of goodwill, a previously unrecognized factor in eminent domain cases.
Bill text
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Document of record
- Version
- Pn 0377 Html
- Published
- Not published in the source record
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Sponsors
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3 on record
Primary sponsor
Cosponsors
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