Currently, the owner could rent out 2 units on the land and break even. But really there could be 12 units there. LVT raises the taxes as if there were 12 units

Currently, the owner could rent out 2 units on the land and break even. But really there could be 12 units there. LVT raises the taxes as if there were 12 units. This will bring the break-even point to renting out 6 units. The owner has to either build out the property (increasing supply, driving down rental prices), sell to someone who will, or lose money. That's also why there shouldn't be an exemption for first home. Obviously made up those numbers but hope you get the idea.