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Tenants are already "taxed" this amount. It just goes to the landholder, rather than the government.
by djrobstep 10y ago
Tenants are already "taxed" this amount. It just goes to the landholder, rather than the government.
- fiter 10y 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 10y 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.