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City of Pittsburgh v. Alco Parking Corp.
United States Supreme Court
417 U.S. 369 (1974)
The city of Pittsburgh (the city) (defendant) enacted an ordinance (the ordinance) that imposed a 20 percent tax on gross receipts from parking or storing automobiles at nonresidential parking facilities. The purpose of the ordinance was to offset the traffic-related costs caused by nonresidential parking facilities. Due to the ordinance, many private-parking-lot operators were unable to make a profit. The Pittsburgh Parking Authority (the parking authority) was a public agency that owned parking spaces in the city. Because the parking authority received tax exemptions, it was able to offer parking at lower rates than those charged by private operators. Alco Parking Corporation (plaintiff), a private-parking-lot operator, brought suit against the city. Alco contended that the ordinance violated the Due Process Clause of the Fourteenth Amendment. The Pennsylvania Supreme Court found that the ordinance constituted an uncompensated taking of property that violated the Due Process Clause. Therefore, the ordinance was invalidated. The city appealed to the United States Supreme Court.
Rule of Law
Holding and Reasoning (White, J.)
Concurrence (Powell, J.)
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