Re:Detroit wants to be the first big American city to tax la...
by ses1984 on Monday October 16, 2023 @08:27PM
(#37908586)
Don’t improvements in nearby plots change the value of a plot of land?
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Re:Detroit wants to be the first big American city to tax la...
by josnyder on Monday October 16, 2023 @08:33PM
(#37908648)
Yes, by design. One major goal is to prevent a landowner from squatting on an empty lot while their neighbors build prosperity around it. The "squatter" then cashes in, having done nothing themselves. "Everyone works but the empty lot" is the commonly used phrase.
The goal of an LVT is to insulate a landowner's tax bill from being affected by their own improvements. Its anti-goal is to insulate a landowner from changes in land use around them.
Re:Detroit wants to be the first big American city to tax la...
by Gigachad on Monday October 16, 2023 @08:48PM
(#37908802)
Another benefit is that it encourages more efficient use of land. Existing taxes mean that if you demolish a high density retail strip and replace it with a McDonald’s or Walmart with large parking lot/drive thru, the tax income plummets while the cost to maintain the roads and plumbing remains the same.
Re:Detroit wants to be the first big American city to tax la...
by eru on Monday October 16, 2023 @09:24PM
(#37909142)
Just to be clear: land value taxes by themselves don't encourage more efficient use of land. Removing taxes on improvements (and on capital and labour) encourages more efficient use of land, and a land value tax can help finance those other tax reductions.
Re:Detroit wants to be the first big American city to tax la...
by ses1984 on Tuesday October 17, 2023 @02:04AM
(#37911192)
It’s just strange phrasing that improvements increase the value of adjacent land but not the land they’re on.
Re:Detroit wants to be the first big American city to tax la...
by enragedcacti on Tuesday October 17, 2023 @11:35AM
(#37916785)
It increases the value of both equally
Re:Detroit wants to be the first big American city to tax la...
by mikecoles on Tuesday October 17, 2023 @03:39PM
(#37920494)
Think of it as part of a communist plan and you'll see the why and who start to make sense.
Re:Detroit wants to be the first big American city to tax la...
by TulliusCicero on Monday October 16, 2023 @08:36PM
(#37908677)
True enough. It doesn't factor in land improvements directly into the calculations, but it could be affected indirectly by whatever the market seems something to be improving the neighborhood in general.