Density. The current property tax system makes it more likely that (in your example) the law firm will push out the bakery. Because improvements are taxed addi

Density. The current property tax system makes it more likely that (in your example) the law firm will push out the bakery. Because improvements are taxed adding more commercial space means paying more taxes, which makes it less likely to happen. With an LVT, expanding the building (up or out) to add a second store/office is cheaper so you’re more incentivized to provide space for both