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How does a LVT solve this? If anything, with property taxes, the owners should be incentivized to destroy their mall to pay less taxes. With LVT, they would pay
by 4death4 3y ago
How does a LVT solve this? If anything, with property taxes, the owners should be incentivized to destroy their mall to pay less taxes. With LVT, they would pay the same tax whether or not the mall still stands. This assumes, of course, the mall has positive value (for tax purposes)
- ethanbond 3y agoThe idea is for the LVT to be high enough to make this behavior infeasible. So yes, they’d pay the same tax rate, but that rate is high enough that it’d be prohibitively expensive to keep it in its current state for very long. They’d have to either turn it into something useful for the community (bring in more businesses or allow people to live there), or sell it to someone who will.