Business owners could claim payment when certain local governments take property

A covered local government would pay an owner for business value lost because it takes property. This covers local governments that provide loans that can be forgiven, and property owners or tenants who run businesses on the property. The government may avoid payment if it shows the loss was unrelated to the taking, could reasonably be prevented through a suitable move or other reasonable steps, or is already covered by another payment. The compensation rule applies to property-taking cases filed after March 31, 2026.

A local government would have to require possible payment for a business owner's lost value as a condition of providing a loan it may forgive. This covers local governments providing those loans and business owners, including tenants who operate a business on the property. The condition says an owner may qualify for payment; it does not promise an award. The loan-condition rule applies after March 31, 2026.

An owner would tell the court about a planned business-loss claim. A municipal works board told of that claim would use court proceedings to take the property. These steps apply when a local government providing loans it can forgive takes property. If an owner uses an objection to tell a works board they plan to claim the loss, the board must end its own proceedings and use court proceedings. The court notice is due within 90 days after first service or publication of notice. These rules apply to proceedings started after March 31, 2026.