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The state rule is a method of calculating compensation for land and property owners who have been affected by a government’s eminent domain powers.
There are actually 9 formal procedural steps in using the state rule.
1) Value before taking
This refers to the value of the estate before action has been taken to prepare it for condemnation.
2) Value of part taken
A landowner’s land might be wholly or partly taken.
This value is subtracted from the value before taking.
3) Remaining value before taking
This refers to the balance after deducting #2 from #1 is.
4) Remaining value after taking
This is a component that has to be docked from #3.
5) Damages to remainder
This figure is a reference for the result of #4 after subtracting from #3.
6) Special benefits to remainder
Any tax or other benefits given to people affect by these events.
It should be deducted from #5.
7) Net damage to remainder
The result of #6 deducted from #5.
8) Value of part taken
This is a number to be added to #7.
9) Just compensation (total difference)
This is the final compensation amount calculated after putting the number through this state rule method.
It is in contrast to the federal rule and more detailed than the before and after rule.