The World Turned Upside Down: Payment for Regulation under Oregon's Measure 37

Abstract

On November 2, 2004, Oregon voters approved Measure 37 by a margin of 60 to 40 percent, making Oregon the first state in the country in which state, regional, and general purpose local governments are obligated to pay for the lowering of property values that results from the adoption of certain land use regulations. Measure 37 follows on the heels of Measure 7, an initiative to add a similar compensation requirement to the state constitution, which passed in 2000 by a 54 percent vote, but was overturned by the Oregon Supreme Court for violating the state's separate vote requirement for constitutional amendments.