Land Value Tax is not the same thing as property tax. LVT is a tax on the unimproved value of the land. That means when the owner builds something on the land,

Land Value Tax is not the same thing as property tax. LVT is a tax on the unimproved value of the land. That means when the owner builds something on the land, it does not affect the tax. Instead, the tax increases when the value of the land increases due to external factors, such as a new light rail transit line is built. This means that a wealthy person owning an empty lot in an expensive part of the city pays just as much tax as the condominium owner next door. This encourages the empty lot owner to build and collect some rents in order to offset the tax. This ultimately increases the supply of real estate and puts downward pressure on rent.