Bill > SB225

This bill amends Pennsylvania's eminent domain laws to provide compensation for business owners who lose goodwill when their property is taken by the government. Under the new provisions, business owners can receive compensation for goodwill loss if they can prove the loss was directly caused by the property taking and is not already compensated through other means. The bill defines goodwill as the benefits a business accrues through its location, reputation, community value, and other factors that help retain existing customers or attract new ones. To receive compensation, the business owner must demonstrate the specific goodwill losses, and the acquiring agency can challenge the claim by showing the losses could have been reasonably prevented through relocation or prudent business practices. If a leaseback agreement is reached, no additional goodwill can accrue during the lease, and the goodwill value will be established at the time of initial property acquisition. Importantly, if the business owner and acquiring agency cannot agree on the goodwill value, the owner must make state tax returns available for confidential review to help determine appropriate compensation. The bill will apply retroactively to declarations of taking filed on or after January 1, 2024, and takes effect immediately.

Budget and Finance, Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=225