Changes Lost Profit Rules for Property Takings
Virginia · HB421 · Introduced Jan 12, 2026
Why it matters
Property owners whose businesses or farms are taken could receive payment for lost profits, but must prove the losses and share tax records. Water system owners may get less if the government's water rates are lower than theirs.
What it does
- Lets owners of businesses or farms seek lost profits when the government takes or damages their property
- Requires owners to show the loss with reasonable certainty and that it could not be prevented by relocating
- Requires owners seeking lost profits to give the condemning agency three years of federal income tax returns
- For waterworks takeovers, lowers lost profits by the difference in water rates charged by the government and the owner
Status
Latest action (2026-07-21): Continued from last session
About this bill
Would let owners of businesses and farms seek lost profits when the government takes their property. Owners must prove the loss and provide three years of tax returns.
Eminent domain; condemnation of public waterworks systems, determination of lost profits.
Perspectives
💬 The case for
Business and farm groups would likely say owners deserve payment for income lost when their property is taken. They may also say the rules set clear proof standards.
💬 The case against
Some local governments would likely say lost-profit claims add costs to public projects. They may also say water rate comparisons could cut owners' payments.
Sponsored by
Sponsor details for this state bill are at the source link.
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