It depends on the tax rates of the land-value tax. If it's equal to 100% of the excess rents, then that removes the drive to speculate on land. Any appreciation

It depends on the tax rates of the land-value tax. If it's equal to 100% of the excess rents, then that removes the drive to speculate on land. Any appreciation in natural rents has a one-to-one increase in your tax bill. Granted, any LVT won't approach the 100%-of-rents rate, so it's a proportional thing. >for the purpose of encouraging building housing how is a land value tax functionally different from a property tax? A land-value tax is indifferent towards a single-family home and a thirty-story apartment building on identical plots of land. Property taxes aren't, they add an additional penalty on the highly-developed land.