4 ms·
In the United States, we call that “property tax”.
by marcus0x62 4y ago
In the United States, we call that “property tax”.
- nemo44x 4y agoI think a lot of people, especially lifetime renters, don’t understand that. Between property tax and maintenance/improvements, land ownership is a burden in many ways.
- metadat 4y agoNot really, property tax is based on the current value, which in theory includes all development. "In theory" because in California there are strategies for doing renovations without triggering a reassessment.
- missedthecue 4y agoSo property taxes are even higher than land value taxes? Because they included land plus development.
- rowanajmarshall 4y agoProperty taxes dissuade development, because the higher the value of that specific property the higher the tax. Land value taxes encourage development because the tax is levied on the _unimproved_ value of the land, so you're incentivised to maximize the value of the improvements of the property. At least that's the theory.
- marcus0x62 4y agoYes, really. The property tax is a privilege tax paid in exchange for exclusive use of the land. That it is calculated on a basis that includes improvements is a truly meaningless distinction.