Re:Oakland shows how to expand housing supply: tell develope...
by ThrustVectoring on Monday December 02, 2019 @04:17PM
(#21687044)
It depends on the tax rates of the land-value tax. If it's equal to 100% of the excess rents, then that removes the drive to speculate on land. Any appreciation in natural rents has a one-to-one increase in your tax bill.
Granted, any LVT won't approach the 100%-of-rents rate, so it's a proportional thing.
>for the purpose of encouraging building housing how is a land value tax functionally different from a property tax?
A land-value tax is indifferent towards a single-family home and a thirty-story apartment building on identical plots of land. Property taxes aren't, they add an additional penalty on the highly-developed land.
Granted, any LVT won't approach the 100%-of-rents rate, so it's a proportional thing.
>for the purpose of encouraging building housing how is a land value tax functionally different from a property tax?
A land-value tax is indifferent towards a single-family home and a thirty-story apartment building on identical plots of land. Property taxes aren't, they add an additional penalty on the highly-developed land.