HARRISBURG -- Municipalities could no longer force property owners to sell homes and businesses to make way for land uses that generate more taxes, under legislation the Senate passed yesterday.

Gov. Ed Rendell is still considering whether to sign it, although it's clear a veto would be overridden. The Senate unanimously approved the legislation.

"The governor's main focus with this legislation is that the greater good of the community is properly balanced with a property owner's rights," said Kate Philips, spokeswoman for the governor.

The legislation would prohibit municipalities from using the power of eminent domain to take property for commercial purposes unless the property is blighted. It allows exceptions for severely tax-delinquent properties or those in chronically blighted areas.

The legislation was introduced in reaction to a 2005 U.S. Supreme Court ruling that allowed the city of New London, Conn., to take the Kelo family's cottage to make room for Pfizer pharmaceutical company to build a research facility. The ruling left open the possibility for states to legislate restrictions on eminent domain.

"We recognized that for homeowners and businesses in Pennsylvania -- a state with rather aggressive eminent domain laws -- the Kelo decision would have particularly frightening consequences," said the legislation's prime sponsor, state Sen. Jeffrey Piccola, R-Dauphin.

Senate leaders agreed.

"The idea that a citizen's property can be taken by the government and turned over to another citizen for nongovernmental use is an outrageous proposition -- that's why we must end such abuses," said Senate Majority Leader David J. Brightbill, R-Lebanon.

Groups like the Pennsylvania League of Cities and Municipalities and the Philadelphia Redevelopment Authority have said eminent domain is an important tool for economic development and urban revitalization.

It isn't fair for one homeowner to hold up a multimillion-dollar development project, the groups have argued.

Mr. Brightbill disagrees.

"We cannot allow our governments to take private property through eminent domain for some use that might or might not produce more taxes and more jobs," Mr. Brightbill said.

"The legislation strikes a reasonable balance by preserving municipalities' ability to address real problems, while giving property owners much-needed protections," he said.