Eminent Domain in Idaho: The Property Owner’s Guide

Idaho does something almost no other western state does: it lets a business owner claim damages to the business itself, not just to the dirt, and the right is lost if you do not give notice before the condemnor moves for possession.

The law that governs takings in Idaho

Idaho’s eminent domain law is codified at Title 7, Chapter 7 of the Idaho Code, sections 7-701 through 7-721. Section 7-701 lists the public uses for which the power may be exercised, section 7-711 governs the assessment of damages, section 7-712 fixes the date damages accrue, section 7-717 addresses possession and the appointment of commissioners, and section 7-721 provides the modern route to possession pending trial.

Section 7-701A, added in 2006 and amended in 2015 and 2021, limits the use of eminent domain by the state, its instrumentalities, political subdivisions, public agencies, and bodies corporate and politic to condemn property in order to convey it to a private interest or person. It provides that eminent domain shall not be used to acquire private property for an alleged public use that is merely a pretext for transferring the property to a private party, or for the purpose of promoting or effectuating economic development. Critically, the section states that the rationale for condemnation is freely reviewable in the course of judicial proceedings.

Who can take property in Idaho

The State of Idaho through the Idaho Transportation Department, counties, cities, highway districts, irrigation and drainage districts, school districts, urban renewal agencies, and utilities all hold condemnation authority, as do certain private entities under Idaho’s broad list of public uses. Section 7-701A is aimed squarely at the urban renewal and economic development routes, and it applies whether the condemnor is the state itself or a body corporate and politic acting on its behalf.

The condemnation process in Idaho, step by step

A condemnation action is filed in district court. The right to take, including the public use and necessity of the taking, is addressed before compensation, and under section 7-701A a court reviewing an urban renewal or economic development taking is not required to defer to the condemnor’s stated rationale.

Once the case is at issue, compensation is determined at trial. Section 7-717 provides a route involving possession by the plaintiff, payment of damages, and appointment of commissioners, and section 7-721 provides the motion practice used in most modern cases to place the condemnor in lawful possession while the valuation dispute proceeds to trial in the regular manner.

Possession and deposits

Under section 7-721, after a condemnation action has been commenced and the defendant has appeared, the plaintiff may file a motion for placement in lawful possession and use of the property. The court fixes a hearing date not less than 10 and not more than 20 days after the motion is filed, with due notice to affected parties. After the court determines just compensation for purposes of the motion, if the plaintiff deposits that amount with the court, the court enters an order fixing when the plaintiff may take possession, and the case then proceeds to trial in the regular manner.

That 10 to 20 day window is short. If a motion for possession has been filed against your property, the practical consequence is that decisions about counsel, appraisal, and any business damages claim have to be made in days, not weeks.

What just compensation includes in Idaho

Idaho compensates the value of the property taken plus damages to the remainder in a partial taking, offset by benefits, with the date of accrual governed by section 7-712.

Section 7-711 also allows business damages, which sets Idaho apart from most states. Business damages are available to a qualifying business of more than five years standing that the taking of a portion of the property and the construction of the improvement in the manner proposed may reasonably cause. The business must be owned by the party whose lands are being condemned, or be located upon adjoining lands owned or held by that party.

The business damage claim must be clearly segregated from the claim for property damages, and it is supported by business records including federal and state income tax returns, state sales tax returns, balance sheets, and profit and loss statements for the five preceding years attributable to the business operation on the property to be acquired. Section 7-711 also provides that the plaintiff’s good faith in failing to offer compensation for business damages shall not be contested at a section 7-721 possession hearing if the defendant has not given notice of its intent to claim business damages before the motion was filed. In practice, that makes early written notice essential.

Relocation assistance and moving costs

Federally funded projects, including most Idaho Transportation Department work, trigger the Uniform Relocation Assistance and Real Property Acquisition Policies Act. Relocation benefits pay moving costs, business reestablishment expenses, and replacement housing supplements, and they are administered separately from the purchase price. Relocation benefits are not the same as business damages under section 7-711, and receiving one does not affect your claim to the other.

Deadlines that protect your rights in Idaho

Two deadlines dominate Idaho practice. The first is the notice of intent to claim business damages, which under section 7-711 should be given before the plaintiff files a motion initiating a possession proceeding, because otherwise the condemnor’s good faith in omitting business damages from its offer cannot be contested at that hearing. The second is the 10 to 20 day window between a possession motion and its hearing.

Both run faster than the ordinary rhythm of a real estate negotiation. If a condemning agency has made you an offer and you own an operating business on the property, get counsel involved before you respond, not after a motion is on file.

How to fight a taking in Idaho

Section 7-701A is the strongest tool Idaho owners have. It bars pretextual public use, bars takings for the purpose of promoting or effectuating economic development, and makes the condemnor’s rationale freely reviewable rather than presumptively valid. Where an urban renewal agency or a city is assembling land that will end up in private hands, that section is where the case begins.

Necessity and scope are also contestable, and easement terms often matter more than the headline price. Width, permitted uses of the surface, access during construction, restoration obligations, and the distinction between permanent and temporary construction easements all affect the property’s value for as long as you own it.

Before you sign anything

The offer is based on an appraisal the condemnor commissioned, and in Idaho it may well omit business damages entirely. Read the appraisal, check its assumptions about access and highest and best use, and if you operate a business on the property, ask specifically whether business damages were considered. Signing a deed or a settlement release ends every claim in the case, including business damages and severance damages that may not be quantified until later.

Frequently asked questions

Does Idaho pay for damage to my business?

Idaho is one of the few states that allows a separate business damages claim. Under section 7-711, business damages are available to a qualifying business of more than five years standing, owned by the party whose land is being condemned or located on adjoining land owned or held by that party, where the partial taking and the proposed improvement may reasonably cause the damage.

What do I have to do to preserve a business damages claim in Idaho?

Give written notice of your intent to claim business damages before the condemnor files a motion for possession. Section 7-711 provides that the plaintiff’s good faith in failing to offer compensation for business damages cannot be contested at a section 7-721 possession hearing if the defendant has not given that notice beforehand. The claim must also be segregated from the property damage claim and supported by five years of business records.

How quickly can a condemnor get possession in Idaho?

Quickly. Under section 7-721, after the action is commenced and the defendant has appeared, the plaintiff may move for possession and the court sets a hearing not less than 10 or more than 20 days later. If the plaintiff deposits the amount the court determines, the court enters an order fixing when possession may be taken and the case proceeds to trial.

Can Idaho take my property for urban renewal or economic development?

Section 7-701A limits condemnation for private parties, urban renewal, and economic development purposes. It provides that eminent domain shall not be used for an alleged public use that is merely a pretext for transferring property to a private party, or for the purpose of promoting or effectuating economic development, and that the condemnor’s rationale is freely reviewable in judicial proceedings.

Where do I look up Idaho’s eminent domain law?

Title 7, Chapter 7 of the Idaho Code, sections 7-701 through 7-721. Section 7-701 lists the public uses, 7-701A sets the limits on private and economic development takings, 7-711 governs assessment of damages including business damages, 7-712 fixes the date damages accrue, and 7-721 governs possession pending trial.