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If you tax the land at a rate greater than a 100% LVT, the market price of the building will be less than the improvement value, and therefore there will not be

If you tax the land at a rate greater than a 100% LVT, the market price of the building will be less than the improvement value, and therefore there will not be a good reason for builders to build. This will create distortions that are harmful and you will ultimately see less tax money.

smnrchrds 5y ago
More than 100% over how long?
- akvadrako 5y ago
  Its basically rent so it doesnt matter if you calculate it by day or by year.
- midasuni 5y ago
  You calculate the rent at day $500 per month and tax at 550 per month. Remember the valuation is based on the rental value of the land, not the capital purchase of the land.