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The problem is if you tax both the land & the buildings, you are discouraging development on the land. A pure land tax avoids that problem. It may be a subtle d
by o_nate 9y ago
The problem is if you tax both the land & the buildings, you are discouraging development on the land. A pure land tax avoids that problem. It may be a subtle difference but if you are looking to increase land tax rates above current levels you want to minimize disruption to economic activity.
- jpao79 9y agoOn the flip side, a large 20 story building consisting of apartments, office space and retail places way more demand on terms of city services (i.e. police, fire, transportation, education and other social services, etc.) than an empty lot so it seems to make sense to tax both land value and building value as it is currently done in many places (including California).