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It's generally called a 'land value tax'. Most of the value of land derives from the amenities provided around it. By taxing the land you encourage development
by bhickey 11y ago
It's generally called a 'land value tax'. Most of the value of land derives from the amenities provided around it. By taxing the land you encourage development and discourage speculation: excess land value will be extracted through taxation.
- ThrustVectoring 11y agoLand-value is a better measure of how much housing "should" be built in an area. Ideally, it'd be a land-value tax with a housing capacity subsidy, making the entire thing revenue-neutral. Unfortunately, Prop 13 makes a LVT infeasible to implement. Maybe a national LVT program would work, but that's replacing a smaller problem with a more difficult one.
- tryitnow 11y agoInstead of a subsidy you could just allow the write-off of the structure's depreciation. Structures, unlike land, lose value over time since they have to be maintained and suffer wear and tear. The bigger the structure, the bigger the tax write-off. LVTs make perfect sense and won't ever be implemented because we just started off on the wrong path. We're stuck with Prop 13.