Land Use & Zoning
A 'regulatory taking' in Arizona occurs when:
AThe government takes private property by eminent domain
BGovernment regulation goes so far as to deprive the owner of all or substantially all economically viable use, requiring compensation✓ Correct
CA city down-zones a property
DEnvironmental regulations restrict property use slightly
Explanation
A regulatory taking (inverse condemnation) occurs when government regulation deprives an owner of all or substantially all economically beneficial use. Under Lucas v. South Carolina Coastal Council and Arizona law, such takings require just compensation.
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