Newly Constructed Home Tax Is Lawful, Doesn’t Constitute Taking

A lawsuit accusing a Kansas city of committing an unconstitutional taking by imposing a regulatory charge fee to fund public parks was dismissed by a federal court because the levy is actually a lawful tax.

Olathe’s Park Excise Tax on new constructed home units was enacted by the city legislature, is used for the public good, and provides essential revenue flow to the government, making it a tax subject to less scrutiny, the US District Court for the District of Kansas said.

Rodrock Homes of Johnson County LLC and Prieb Homes Inc., the suing developers, argued that the charge was ...