SB 225 — An Act amending Title 26 (Eminent Domain) of the Pennsylvania Consolidated Statutes, in just compensation and measure of damages, providing for compensation for loss of goodwill.

PRINTER'S NO.   377

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 225
                                                Session of
                                                  2025

     INTRODUCED BY DUSH, ROTHMAN AND HUTCHINSON, MARCH 14, 2025

     REFERRED TO STATE GOVERNMENT, MARCH 14, 2025


                                     AN ACT
 1   Amending Title 26 (Eminent Domain) of the Pennsylvania
 2      Consolidated Statutes, in just compensation and measure of
 3      damages, providing for compensation for loss of goodwill.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 26 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a section to read:
 8   § 717.   Compensation for loss of goodwill.
 9      (a)   Compensation.--The owner of a business conducted on the
10   property taken, or on the remainder if the property is part of a
11   larger parcel, shall be compensated for loss of goodwill if the
12   owner proves all of the following:
13            (1)   The loss is caused by the taking of the property or
14      the injury to the remainder.
15            (2)   Compensation for the loss will not be duplicated in
16      the compensation otherwise awarded to the owner.
17      (b)   Rebuttal of compensation.--The acquiring agency may
18   rebut the compensation under subsection (a) if the acquiring
19   agency proves that the loss could have reasonably been prevented
 1   by a relocation of the business or by taking steps and adopting
 2   procedures that a reasonably prudent person would take and adopt
 3   in preserving the goodwill.
 4      (c)   Leaseback agreement.--If the acquiring agency and the
 5   owner enter into a leaseback agreement, the following shall
 6   apply:
 7            (1)   No additional goodwill shall accrue during the
 8      lease.
 9            (2)   The entering of a leaseback agreement shall not be a
10      factor in determining goodwill and any liability for goodwill
11      shall be established and paid at the time of acquisition of
12      the property by eminent domain or subsequent to notice that
13      the property may be taken by eminent domain.
14      (d)   Use of State tax returns.--
15            (1)   If the owner of a business and the acquiring agency
16      do not agree on the value of goodwill, the owner of a
17      business claiming compensation under this section shall make
18      available to the board of viewers or court, and the board of
19      viewers or court shall, upon terms and conditions as will
20      preserve confidentiality, make available to the acquiring
21      agency the State tax returns of the business for audit for
22      confidential use solely for the purpose of determining the
23      amount of compensation under this section.
24            (2)   Nothing in this section affects any right a party
25      may otherwise have to discovery or to require the production
26      of documents, papers, books and accounts.
27      (e)   Definitions.--As used in this section, the following
28   words and phrases shall have the meanings given to them in this
29   subsection unless the context clearly indicates otherwise:
30      "Goodwill."    The benefits that accrue to a business as a

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1   result of its location, cultural heritage value to the
2   community, reputation for dependability, skill or quality and
3   any other circumstances resulting in probable retention of old
4   or acquisition of new patronage.
5      Section 2.   This act shall apply retroactively to a
6   declaration of taking filed on or after January 1, 2024.
7      Section 3.   This act shall take effect immediately.




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