Re:High property taxes are good
by indecisive_user on Wednesday July 20, 2022 @02:17PM
(#32169954)
If everyone on the block turns their homes into multiplexes or high rises, this would attract businesses/restaurants to cater to the new residents which would ultimately increase the value of the land and the corresponding taxes, so I'm confused how it's different than property taxes in that regard
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Re:High property taxes are good
by JumpCrisscross on Wednesday July 20, 2022 @02:46PM
(#32170384)
> this would attract businesses/restaurants to cater to the new residents which would ultimately increase the value of the land and the corresponding taxes
Lot more steps. Developing a property is risky. The double whammy of eating the development cost in addition to increased property tax bill dissuades homeowners from taking the risk. (Yes, theoretically, prices should go down as easily as they go up. In reality, obviously, no, no city does that.)
By the time your land value has increased, you’ve already made money. (Or ridden on your neighbours’ investments.)
Re:High property taxes are good
by colinmhayes on Wednesday July 20, 2022 @03:56PM
(#32171306)
Unless every property in the area is owned by the same person each individual owner will want to build a more expensive building because their individual action has minimal effect on land value. Basically if you don’t build big someone else will and you r lvt will go up either way.