They're incentivized to build taller buildings so they can have more tenants split the cost of the tax, lowering the cost of their building's offering and stayi

They're incentivized to build taller buildings so they can have more tenants split the cost of the tax, lowering the cost of their building's offering and staying competitive. That's the whole point of the land tax... if you want to plop a single-family home on a given parcel of land, you can if the single family wants to pay for the whole thing. But there's a strong incentive to build taller so more people competitively split the tax.