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If the people who currently own the apartments have to sell because they are unable to afford the taxes then they would be in a poor bargaining position - they
by mrow84 11y ago
If the people who currently own the apartments have to sell because they are unable to afford the taxes then they would be in a poor bargaining position - they would pay for their "desire" for immediacy. Those who purchase the apartments would, therefore, be paying below the market rate (defining the market rate based solely on people's desires, without including their financial position).
- tehwalrus 11y agoImmediacy is a problem, yes. That's why at the start of a LVT people must be allowed a grace period of a couple of years to pay. Some argue for deferring such taxes until the property is sold or inherited, but that could lead to even worse situations like the one described.
- mrow84 11y agoMightn't the deferral of tax payments until newly-taxed properties are sold or inherited remove (or at least reduce) the time correlation, thus improving the market position of the sellers? Avoiding any adjustment in ownership patterns seems impossible to achieve without strong legislation, but attempting to provide adequate compensation through the market (rather than the government) seems like it might work? (question mark because I really have no idea...)