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Sheetz v. County of El Dorado

No. 22-1074 SCOTUS · Decided SCOTUS
Argued: Jan 9, 2024 Decided: Apr 12, 2024


The Law · How the Case Works

Overview

Overview

The Supreme Court held unanimously that the Takings Clause applies to legislatively imposed permit exactions -- fees or conditions imposed on building permits -- just as it applies to administratively imposed ones, rejecting the argument that Nollan/Dolan's heightened scrutiny applies only to adjudicative determinations.

The Facts

Facts

George Sheetz sought a building permit from El Dorado County, California and was required to pay a traffic impact fee set by county ordinance. He challenged the fee as an unconstitutional taking, arguing it lacked the required nexus and proportionality. The California courts rejected his claim, holding Nollan/Dolan does not apply to legislative exactions.

The Issue

Issue

Whether the Takings Clause standard requiring an essential nexus and rough proportionality between permit conditions and project impacts applies when the condition is imposed by legislative action rather than administrative discretion.

The Rules

Rule

The Nollan/Dolan nexus and proportionality requirements for permit exactions are not limited to adjudicative determinations; the Takings Clause applies equally when a legislature enacts a generally applicable fee schedule, subjecting legislatively imposed exactions to the same constitutional scrutiny.

The Application

Analysis

Sheetz's traffic impact fee, though imposed by county ordinance rather than administrative discretion, must satisfy the Nollan/Dolan nexus and proportionality test because the Takings Clause applies uniformly regardless of whether the exaction's source is legislative or administrative. The Court rejected El Dorado County's position that general applicability insulates ordinance-imposed permit conditions from heightened constitutional review, holding that enactment by legislative process does not convert an exaction into a permissible tax or regulation exempt from takings scrutiny. On remand, courts must examine whether the specific fee bore an essential nexus to the impact of Sheetz's development and was roughly proportional to that impact. A two-prong test the Supreme Court declined to resolve, leaving the constitutional fate of the fee itself for lower courts to determine.

The Conclusion

Conclusion

Unanimous ruling for Sheetz on the threshold question. Barrett wrote the majority. The case was remanded to determine whether the specific fee satisfied Nollan/Dolan; the Court did not decide that question.

The Record · 1 original document
CourtSupreme Court of the United States
FiledMay 4, 2023
CL StatusActive
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No circuit court data for this case.

Cert Granted -
StatusActive
Filed (CL)May 4, 2023
View on CourtListener →
SCOTUS TMR-1b70c001 Jul 28, 2026

Related Cases (2)

  • Perry v. Sindermann (1972)
    Perry v. Sindermann is cited for the unconstitutional conditions doctrine, which the Court uses as the foundation for the two-part test requiring permit conditions to have an essential nexus to and rough proportionality with the government's legitimate interests.
  • Gitlow v. New York
    Gitlow v. New York is cited for the legal principle that the government's authority to deny permits for legitimate purposes also extends to conditioning those permits on the same regulatory grounds.
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