Defined term
Nollan/Dolan test
The Nollan/Dolan test is the constitutional standard for development exactions: the condition must have an essential nexus to the development's impact AND be roughly proportional to that impact.
Nollan (1987) requires that any condition imposed on a development permit have an "essential nexus" to the impact the permit creates. Dolan (1994) added that the condition must also be "roughly proportional" in extent — the government must make some individualized determination that the exaction is related both in nature and extent to the impact.
The Sheetz decision in 2024 extended both prongs to legislative exactions, dramatically broadening the doctrine's reach. Many flat-rate impact fees imposed by ordinance fail Dolan's proportionality prong because they bear no relation to the actual impact of an individual project.
Cases
- Nollan v. California Coastal Comm'n (1987), 483 U.S. 825
- Dolan v. City of Tigard (1994), 512 U.S. 374
- Sheetz v. County of El Dorado (2024), 601 U.S. ___