An exaction is a concept in real property law where a condition for development is imposed on a parcel of land that requires part of the land to be dedicated to public use

Public use

Public use is a legal requirement under the takings clause of the Fifth Amendment of the U.S...

. Exactions are similar to impact fees, which are direct payments to local governments instead of conditions on development.

Exactions and takings

The Supreme Court of the United States

Supreme Court of the United States

The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...

 has identified several criteria for identifying when an exaction becomes a taking that requires compensation under the Fifth Amendment

Fifth Amendment to the United States Constitution

The Fifth Amendment to the United States Constitution, which is part of the Bill of Rights, protects against abuse of government authority in a legal procedure. Its guarantees stem from English common law which traces back to the Magna Carta in 1215...

.

Essential nexus

In Nollan v. California Coastal Commission

Nollan v. California Coastal Commission

In Nollan v. California Coastal Commission, 483 U.S. 825 , the United States Supreme Court reviewed a regulation under which the California Coastal Commission required that an offer to dedicate a lateral public easement along the Nollans' beachfront lot be recorded on the chain of title to the...

, the court ruled that an exaction is legitimate if it shares an "essential nexus" with the reasons that would allow rejection of the permit altogether. In Nollan the court required compensation for a public easement

Easement

An easement is a certain right to use the real property of another without possessing it.Easements are helpful for providing pathways across two or more pieces of property or allowing an individual to fish in a privately owned pond...

 over the dry sand area of the beach as a condition for development, because they found that the easement was not closely related enough to fighting the psychological barrier to beach access that the development would present.

Rough proportionality

In Dolan v. City of Tigard

Dolan v. City of Tigard

Dolan v. City of Tigard, , more commonly Dolan v. Tigard, was a United States Supreme Court case argued before the Court in 1994. It was a landmark case regarding the practice of zoning and property rights, and served to establish limits on the ability of cities and other government agencies, to...

, the court added that an exaction is legitimate only if the burdens imposed on the permit applicant are roughly proportional to the benefits provided to the public. In Dolan, the court required compensation for an exaction that required a public greenway

Greenway (landscape)

A greenway is a long, narrow piece of land, often used for recreation and pedestrian and bicycle user traffic, and sometimes for streetcar, light rail or retail uses.- Terminology :...

 and bike path, because a private greenway would have been sufficient and the City of Tigard

Tigard, Oregon

Tigard is a city in Washington County, Oregon, United States. The population was 48,035 at the 2010 census. As of 2007, Tigard was the state's 12th largest city. Incorporated in 1961, the city is located south of Beaverton and north of Tualatin, and is part of the Portland metropolitan area...

was not specific enough about the benefits of the bike path.