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Competition will not resolve the issue of taxes being passed on, because all properties will have an increased tax burden. The smallest tax/rent increase will
by fiter 9y ago
Competition will not resolve the issue of taxes being passed on, because all properties will have an increased tax burden.
The smallest tax/rent increase will go to those using the land relatively optimally (to be decided by tax surveyors).
- djrobstep 9y agoTenants are already "taxed" this amount. It just goes to the landholder, rather than the government.
- fiter 9y agoI think your statement requires some justification. After a property has changed hands, the speculative value has gone away with the seller (who was a landholder but is no longer). The new landholder paid for the cash flow at market rates and so any significant additional cost (tax) would result in a loss. The new landholder will have to increase rents to make up the loss. This will be played out across the market.
- fiter 9y agoI'd also like to suggest that a lot of the price increases in the SF bay area are related to difficulty developing new units. The intention of the land tax is to increase the usage (density) of valuable areas; however, that requires being able to develop! Development is very hard and risky in many parts of the SF bay area.