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> "That is still a tax on capital" What's your definition of capital? "and like to cause a lot of social issues." Which parts of this article on land-value t

• sokoloff 11y ago
  That the methods proposed for valuing are good enough. https://en.m.wikipedia.org/wiki/Land_value_tax#Assessment.2Fappraisal https://en.m.wikipedia.org/wiki/Land_value_tax#Assessment.2F... In particular, the "Value can be computed by capitalizing rental streams." (Is someone renting the land, or are they renting the office skyscraper that's on the land?) "Further, valuators in the home-and-contents insurance industry do so in order to calculate an insurance premium, separating the value of the home from the value of the land." My experience is that's done in a straight-line percentage method ("the land is 20% of the purchase price in this area"), which doesn't distinguish adequately enough for taxation valuation purposes, IMO, but does provide some basis for insurance company purposes. "Another approach is the residual method: the value of the site is the property's total value minus the depreciated value of buildings and other structures." So, the land I own under a rental property gets more and more valuable each year (as I depreciate the buildings and structures)? Then, I sell it to another investor and the land value drops again to a low baseline and starts to rise as THEY depreciate the buildings? That doesn't make any sense to me. The article admits that the whole valuation topic is a hard problem and I agree with that.