Takings Clause

The Takings Clause is the last phrase of the Fifth Amendment: "nor shall private property be taken for public use, without just compensation." It applies to the states through the Fourteenth Amendment under the incorporation doctrine.

The clearest case is physical seizure of land through eminent domain. The Supreme Court has also recognized regulatory takings, where a regulation goes "too far." Under Lucas v. South Carolina Coastal Council (1992), a rule that wipes out all economic use of land generally requires compensation, and Penn Central Transportation Co. v. New York City (1978) provides a multi-factor test for other cases. In Cedar Point Nursery v. Hassid (2021), the Court held that a state regulation giving union organizers access to farm property was a physical taking.

The clause is central to the property-rights movement, which argues that zoning, environmental and rent control rules can shift the cost of public goals onto individual owners. Defenders of regulation say governments must be able to regulate without paying for every restriction. Disputes also arise over what counts as "public use," a question in Kelo v. City of New London (2005).