Wouldn't the current zoning of the land be reflected in the valuation (and thus LVT paid)? For example, why would a land zoned for SFH be valued as if a 20 stor

Wouldn't the current zoning of the land be reflected in the valuation (and thus LVT paid)? For example, why would a land zoned for SFH be valued as if a 20 story apartment could be built on it? Ie. The zoning should put a cap on the valuation.