By Allan A. Wiesel
The doctrines of eminent domain and tax reassessment are
seemingly unrelated. In reality, though, tax reassessment can
be utilized as a “backdoor” eminent domain to accomplish some of
the very same goals: increased revenue for cash-strapped
municipalities. In Kelo v. City of New London, the Supreme
Court expanded the permissible scope of eminent domain to include
the increase of tax revenue. A municipality in need of
additional revenue could condemn “blighted” homes and replace them
with luxury condominiums. The public outcry, however, that
often accompanies such eminent domain “takings” can act as a
deterrent for a politician who does not want to tarnish his
name. Instead, he can rely on a tax reassessment to realize
the same revenue increase without ruining his reputation.
When a municipality conducts a reassessment, especially after a
long period without one, the homeowners that cannot afford the
higher taxes are forced to sell their homes to wealthier people who
can afford the taxes. These wealthier individuals earn more
money, and hence, pay more income tax. They also spend more
money, and therefore, generate more sales tax. This Note
makes the above connection between eminent domain and tax
reassessment, and suggests reasons why one doctrine might be used
in place of the other by a municipality in distress. The Note
also discusses ways to prevent future misuse of the doctrines.