To mitigate the political frictions, LVT should probably be bundled with principal residence deduction(or exemption).

Yeah, there's a lot of devil in the details as far as determining the actual formula as a function land value. I typically imagine there are ways to align an LVT along a progressive scale, such that the little old lady who owns nothing but her own small lot isn't burdened by the tax while generously backed speculators buying up all waterfront property in sight are.