Land Use & Zoning
A Mississippi zoning ordinance is challenged as an 'unconstitutional taking' under the Fifth Amendment. Under Penn Central Transportation Co. v. New York, courts evaluating regulatory takings consider:
AOnly whether the regulation generates tax revenue
BThe economic impact on the property owner, interference with reasonable investment-backed expectations, and the character of the government action✓ Correct
COnly whether the government has a rational basis for the regulation
DOnly whether the property owner paid fair market value
Explanation
The Penn Central balancing test for regulatory takings weighs: (1) the economic impact of the regulation on the property owner, (2) interference with reasonable investment-backed expectations, and (3) the character of the governmental action. These factors are balanced to determine if compensation is required.
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