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Do you think that's a problem with existing property taxes? The main difference between property and land tax is that with a land tax, the structure isn't taxe

by klipt 5y ago

Do you think that's a problem with existing property taxes? The main difference between property and land tax is that with a land tax, the structure isn't taxed. So you can build up "for free" wrt taxes, which encourages more density on the most valuable land. E.g. land in the middle of downtown San Francisco that's currently rented out as a flat parking lot, could instead be built up into multi level parking or housing instead. Whereas the current tax structure would punish such developments by increasing the tax (which is why it's still a flat parking lot).

MrPowers 5y ago
San Francisco is an interesting case cause they used to have a land tax and economists argued that's what cause San Fran to be quickly rebuilt after it was burned to the ground in 1906. Land owners were still taxed the same, even though their building was gone. They'd have to either sell or rebuild. Contrast that with New Orleans after Hurricane Katrina. Property owners had their buildings destroyed, so taxes went to zero (taxes based on the property value, not the land value). This incentivized property owners to wait and see if their neighbors would rebuild rather than take immediate action.
- oblio 5y ago
  That's works only if you're an investor. You're going to rebuild your home immediately, finance optimizations be damned.
  - duped 5y ago
    But that's not what happened. People didn't rebuild their homes, they left and never came back.
    - kebman 5y ago
      As a consequence of the tax, or because of the risk of rebuilding in a flood zone?
- PragmaticPulp 5y ago
  > San Francisco is an interesting case cause they used to have a land tax Property taxes on land aren't unique to San Francisco. It's basically standard practice in most cities to have one tax for property and one tax for improvements. > Contrast that with New Orleans after Hurricane Katrina. Property owners had their buildings destroyed, so taxes went to zero (taxes based on the property value, not the land value) New Orleans has separate property taxes on land and structures, so property taxes did not go to $0 after Katrina. Overall property tax rates went up because income from taxes on structures went down, but unimproved lots still get a tax bill.
  - gnopgnip 5y ago
    Are there any places outside of PA that do this in modern times?

by klipt 5y ago

MrPowers 5y ago

San Francisco is an interesting case cause they used to have a land tax and economists argued that's what cause San Fran to be quickly rebuilt after it was burned to the ground in 1906. Land owners were still taxed the same, even though their building was gone. They'd have to either sell or rebuild. Contrast that with New Orleans after Hurricane Katrina. Property owners had their buildings destroyed, so taxes went to zero (taxes based on the property value, not the land value). This incentivized property owners to wait and see if their neighbors would rebuild rather than take immediate action.

oblio 5y ago
That's works only if you're an investor. You're going to rebuild your home immediately, finance optimizations be damned.
- duped 5y ago
  But that's not what happened. People didn't rebuild their homes, they left and never came back.
  - kebman 5y ago
    As a consequence of the tax, or because of the risk of rebuilding in a flood zone?
PragmaticPulp 5y ago
> San Francisco is an interesting case cause they used to have a land tax Property taxes on land aren't unique to San Francisco. It's basically standard practice in most cities to have one tax for property and one tax for improvements. > Contrast that with New Orleans after Hurricane Katrina. Property owners had their buildings destroyed, so taxes went to zero (taxes based on the property value, not the land value) New Orleans has separate property taxes on land and structures, so property taxes did not go to $0 after Katrina. Overall property tax rates went up because income from taxes on structures went down, but unimproved lots still get a tax bill.
- gnopgnip 5y ago
  Are there any places outside of PA that do this in modern times?