Mississippi Senate Bill SB2085

Mississippi 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23
• Failed: 1/31/23

Caption

Eminent domain; provide compensation for the loss of a business's goodwill.

Impact

The introduction of SB2085 would amend existing state laws concerning eminent domain by formally recognizing goodwill as a compensable asset in cases where businesses are adversely affected. The bill states that compensation can only be awarded if the owner proves that the loss cannot be prevented by relocation or other prudent measures. This introduces a new validation process for calculating business losses and may impact how future eminent domain cases are handled in Mississippi.

Summary

Senate Bill 2085 aims to establish provisions for compensating business owners whose properties are taken under the power of eminent domain. Specifically, the bill outlines the circumstances under which an owner can claim compensation for the loss of goodwill associated with their business due to such takings. This is particularly relevant for businesses that may not be able to relocate or adequately recover their losses through other means. The bill intends to enhance protections for business owners, ensuring they receive fair compensation under specific conditions.

Conclusion

Overall, SB2085 represents a significant legislative step in protecting the rights of business owners during eminent domain proceedings, but it will likely provoke discussion about the implications for state resources and the administrative feasibility of implementing such compensation requests.

Contention

Despite the intentions to support business owners, SB2085 may face opposition on several fronts. Critics could argue that the bill places additional burdens on the state by requiring the disclosure of state tax returns to determine compensation amounts, raising concerns about privacy and the potential for misuse of sensitive financial information. Furthermore, while the bill recognizes the importance of goodwill in business operations, questions on how this will be assessed and calculated could lead to disputes, particularly if businesses feel that their valuations are inadequate.