[Congressional Record (Bound Edition), Volume 151 (2005), Part 12]
[House]
[Pages 16287-16288]
[From the U.S. Government Publishing Office, www.gpo.gov]




            H.R. 3268, EMINENT DOMAIN TAX RELIEF ACT OF 2005

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Georgia (Mr. Gingrey) is recognized for 5 minutes.
  Mr. GINGREY. Mr. Speaker, I rise today as the proud author of H.R. 
3268, the Eminent Domain Tax Relief Act of 2005. I also rise to 
continue the discussion on eminent domain in light of the recent Kelo 
v. The City of New London, Connecticut, decision by the United States 
Supreme Court.
  Within 1 week of the Kelo decision, this House demonstrated its 
commitment to the American people and their property rights through 
passage of House Resolution 340 by an overwhelming and bipartisan vote. 
Mr. Speaker, through H. Res. 340, this House condemned the Kelo 
decision and issued a warning that abusive eminent domain will not be 
tolerated by this Congress.
  However, Mr. Speaker, there is more work to be done, and I look 
forward to the House's consideration of H.R. 3135, the Private Property 
Rights Protection Act, introduced by the distinguished chairman of the 
Committee on the Judiciary, the gentleman from Wisconsin (Mr. 
Sensenbrenner). I have proudly joined the chairman in cosponsoring this 
bill that will codify into statute the principles and concerns that we 
expressed by House Resolution 340.
  Today, though, I would like to press forward in the fight to protect 
the American people's property rights and to discuss H.R. 3268, the 
Eminent Domain Tax Relief Act. This bill will ensure tax fairness for 
all who lose property through eminent domain. The

[[Page 16288]]

Eminent Domain Tax Relief Act will exempt individuals who lose their 
homes or businesses by eminent domain from paying capital gains tax on 
the revenue generated from the forced sale.
  Mr. Speaker, there is no question that eminent domain must remain a 
tool of last resort for the government and a tool employed only for 
public use. However, while most Americans accept traditional and proper 
execution of eminent domain for schools, roads, and other expressly 
public uses, no individual should ever have to pick up the tab with IRS 
when the government decides to sell his or her own home or business. 
Mr. Speaker, these individuals did not make the decision to sell their 
property, and they should not be penalized by the Tax Code for a 
decision that they did not make.
  In the wake of the Kelo decision, this Congress, the media, and the 
collective discussions around American dinner tables across this 
country have focused upon questions of acceptable uses of eminent 
domain. Well, the Constitution speaks loud and clear. Eminent domain 
should only be for public use.
  Additionally, the Constitution also requires the government to give 
just compensation for any taking of private property. Is it just 
compensation, Mr. Speaker, to send the government wrecking ball and an 
IRS agent to the same door at the same time? I think not. It is simply 
unconscionable for the government to add insult to injury by taxing 
those people who are losing their homes and businesses by no choice of 
their own.
  Often, these individuals have to pay many additional costs when the 
government condemns their properties. Individuals assume the cost of 
relocating to somewhere else, and condemned businesses have merchandise 
that would not only have to be moved but, in many cases, would have to 
be stored in the interim. Therefore, Mr. Speaker, the government must 
redouble its efforts to ensure these individuals receive just 
compensation and are not additionally burdened by the Tax Code.
  I encourage all my colleagues to take a good hard look at this 
legislation. I believe that they will see that it is the right thing to 
do. There should be no taxation on government condemnation.
  Mr. Speaker, I ask all my colleagues to stand firm against this 
injustice. Sign on to H.R. 3268, supporting tax relief for all those 
who pay the price when the government wrecking ball comes.

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