Please ensure Javascript is enabled for purposes of website accessibility

09-3673 Kathrein v. City of Evanston, Illinois

By: WISCONSIN LAW JOURNAL STAFF//March 11, 2011//

09-3673 Kathrein v. City of Evanston, Illinois

By: WISCONSIN LAW JOURNAL STAFF//March 11, 2011//

Listen to this article

Constitutional Law
Takings; demolition tax

A municipality’s affordable housing demolition tax is not a tax, but a regulation, so a constitutional challenge is not barred by the Tax Injunction Act.

“We are especially sure that review of the Demolition Tax will not threaten the revenue on which Evanston relies because proceeds of the Demolition Tax do not supply the city’s general fund. Rather, the proceeds supply an Affordable Housing Fund, which helps low- and moderate-income residents afford housing in Evanston. The Fund gives these residents an incentive to remain in their homes in Evanston, further promoting the maintenance of affordable housing in the city. When a government directs proceeds from a charge to a separate fund, it suggests the purpose of the charge is not to raise revenue. See id. Here, the use of the proceeds strongly supports our conclusion that the purpose of the charge is to regulate behavior because the proceeds are used, in part, to amplify the regulatory efficacy of the charge.”

Affirmed in part, and Reversed in part.

09-3673 Kathrein v. City of Evanston, Illinois

Appeal from the United States District Court for the Northern District of Illinois, Guzmán, J., Kanne, J.

Full Text

Polls

Should Steven Avery be granted a new evidentiary hearing?

View Results

Loading ... Loading ...

Legal News

See All Legal News

WLJ People

Sea all WLJ People

Opinion Digests