Government powers: police power, eminent domain, taxation, and escheat

Four government powers

Private ownership remains subject to PETE: police power, eminent domain, taxation, and escheat. Identify the purpose of the government action.

Police power: regulate use

Police power protects public health, safety, morals, and general welfare. Zoning, building codes, and health regulations are examples. Requiring safe electrical wiring regulates property use while the owner keeps title. Police power extends beyond the work of police officers. Ordinary valid regulation does not ordinarily require compensation, but a regulation that legally constitutes a taking can require compensation; specific protections depend on applicable law.

Eminent domain: acquire for public use

Eminent domain permits acquisition of private property for public use with just compensation. Condemnation is the legal process for exercising that power. Acquiring a strip of land for a public highway is an example. A taking may involve an easement, a portion of a parcel, or the entire property. An owner's refusal to sell does not itself defeat lawful condemnation. Compensation does not replace the public use requirement.

Taxation: raise revenue

Government taxes support public services. Ad valorem property taxes are based on value; taxable value and the tax rate determine the amount. Nonpayment can lead to a tax lien and ultimately tax foreclosure through required procedures. This remains enforcement of taxation even if title changes. Private mortgage payments and association assessments are different obligations.

Escheat: title passes to the state

When an owner dies intestate, without a valid will, and has no legal heirs, property passes to the state through the applicable legal process. No will alone is insufficient if heirs exist. Vacancy, absence, and delinquent taxes do not by themselves establish this form of escheat.

Ask: Is government regulating use, acquiring an interest for public use, collecting revenue, or receiving title following death without a will or heirs?