Eminent Domain and Churches: Understanding Your Rights

Discover how eminent domain impacts churches, with key legal insights and guidance for negotiating fair compensation.

Last Reviewed: January 8, 2025

Church treasurers must understand how eminent domain works and what compensation churches are entitled to when property is taken for public purposes.

Key Takeaways:

  • Governments can take private property for public purposes under eminent domain laws.
  • “Just compensation” must be provided to property owners, including churches.
  • Churches are typically not entitled to “business damages.”

Eminent domain allows governments to take private property for public use, provided they pay “just compensation.” Churches, like other property owners, are subject to this law. However, determining what constitutes “just compensation” can be complex, as illustrated in the case of Trinity Temple Church of God in Christ v. Orange County.

What Is Eminent Domain?

Eminent domain, also known as condemnation, is the government’s power to take private property for public use, such as building roads, schools, or utilities. Under the Fifth Amendment to the U.S. Constitution, property owners are entitled to “just compensation” when their property is taken.

Did You Know? “Just compensation” typically equals the fair market value of the property but does not always include additional damages like lost profits.

The Trinity Temple Case

In Trinity Temple Church of God in Christ v. Orange County, 681 So.2d 765 (Fla. App. 1996), a Florida county used eminent domain to take part of a church parking lot for a street expansion project. The county compensated the church for the land taken, but the church argued it was entitled to additional “business damages,” claiming reduced parking would decrease attendance and donations.

The Florida appeals court disagreed, ruling that business damages apply only to businesses, not churches. The court stated, “Because the promotion of religion, not its own livelihood, is the primary purpose of a church … we conclude that a church is not a business as that term is used [in the statute].”

What Churches Should Know

When facing eminent domain, churches should consider the following:

1. Understand Your Rights

Governments must provide “just compensation” for any property taken. This compensation usually reflects the property’s fair market value.

2. Assess Impacts Beyond Land Value

While churches are not entitled to “business damages,” they may negotiate for compensation covering specific impacts on their operations, such as parking or accessibility.

3. Review Local Laws

Eminent domain laws vary by state. Consult with a local attorney familiar with eminent domain to understand your church’s rights and options.

If your church is approached with an eminent domain claim, work with legal counsel to ensure fair compensation and address any unique concerns about church operations.

FAQs About Eminent Domain and Churches

  • What is eminent domain?
    Eminent domain is the government’s power to take private property for public purposes, provided “just compensation” is paid.
  • Are churches subject to eminent domain?
    Yes, churches are subject to eminent domain like any other property owners.
  • What is “just compensation”?
    “Just compensation” usually reflects the fair market value of the property taken by the government.
  • Can churches claim business damages?
    No, churches are typically not entitled to business damages as they are not classified as businesses under most state laws.

By understanding your rights under eminent domain laws, churches can navigate property takings more effectively and advocate for fair compensation.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.
ChatGP4o, Team Gloo Workspace
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This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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