[Congressional Record (Bound Edition), Volume 150 (2004), Part 10]
[Extensions of Remarks]
[Page 13078]
[From the U.S. Government Publishing Office, www.gpo.gov]




        FAIR OPPORTUNITY FOR THE LITTLE GUY UNDER EMINENT DOMAIN

                                 ______
                                 

                            HON. BOB FILNER

                             of california

                    in the house of representatives

                        Thursday, June 17, 2004

  Mr. FILNER. Mr Speaker, I rise today to urge support of H.R. 4603, 
the Eminent Domain Relief for the Little Guy Act. I have introduced 
this bill to address a current law that makes the hardship of being 
forced to sell property to the government under eminent domain even 
more difficult.
  The use of eminent domain is authorized in the Constitution and has 
been used throughout our Nation's history to acquire the property 
necessary to build roads, schools, military bases, and government 
buildings. However, that these projects serve the greater good must 
seem little consolation to an owner whose property comes under threat 
of eminent domain. Eminent domain can derail a property owner's life 
plan, erasing years of hard work spent getting a business off of the 
ground or building a home.
  The Constitution makes it clear that a property owner forced to sell 
under eminent domain is entitled to ``just compensation.'' While it is 
debatable whether any compensation can be truly just, it seems that, at 
the very least, the government owes a seller a fair price for their 
property and the opportunity to rethink their plan and to move on with 
their life.
  Current tax law related to gain on sale of property under eminent 
domain denies sellers the opportunity to decide how they would like to 
move on with their life. It mandates that sellers must pay taxes on 
income from sale under eminent domain unless they reinvest their money 
in real estate within 3 years. So not only is the government forcing 
property owners to sell their property, it is also telling them what to 
do with the money from that sale.
  The Eminent Domain Relief for the Little Guy Act will remedy this by 
removing the current requirement that a seller must reinvest in real 
estate. This will make sale of all real property by an individual or a 
small business under eminent domain tax exempt, meaning that the seller 
can use their income to start a business, invest in the stock market, 
save for retirement, or, if they choose, reinvest in real estate. Many 
will indeed choose to buy a new home or to move their business to a new 
location. But fairness dictates that this should be their decision.
  I urge my colleagues to support H.R. 4603 and make sure the little 
guys and gals who are forced to sell under eminent domain are allowed 
the flexibility in spending their income that they need and deserve.

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