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I am responding to the comment I quoted, namely: "parking lots, and self storage facilities would be penalized because they wouldn't generate enough income to c
by jjav 10mo ago
I am responding to the comment I quoted, namely: "parking lots, and self storage facilities would be penalized because they wouldn't generate enough income to cover taxes on land".
So if a LVT has the explicit goal of eliminating things like parking lots and self storage units because those don't generate enough income to pay for the taxes, then what hope do things like playgrounds and parks have to continue existing.. they generate far less income than a self storage facility.
- estearum 10mo agoAnd they just answered: they generate huge amounts of income for the entity that actually pays for playgrounds and parks (the city).
- jjav 10mo agoThat feels like wishfull thinking. What I see around me in practice is government doing all they can to sell off public lots (like parks) to developers to tear down the park and build another luxury condo. More tax revenue, more money in the government pocket, some bribes under the table, another loss of quality of life in the neighborhood.
- estearum 10mo agoRight, because selling it is a better revenue opportunity. Under the tax scheme described, the reverse is true.
- jjav 10mo ago> Under the tax scheme described, the reverse is true. Explain how.. In a dense urban area, with LVT, that lot that held a park will bring even larger tax revenue when the city sells it off to a developer. Having the tax be based on maximum potential usage will only increase the temptation to sell it off and remove yet another park from the people.
- kiba 10mo agoIt would decrease land value since the park is no longer there. Tax revenue would decrease as quality of life decreases.
- jjav 10mo agoI think this assumes politicians who care about subjectives like quality of life, and who are able to think in long-term sustainable city finances instead of just maximizing what they can grab in current fiscal year. We don't have any such politicians in power in the US.
- kiba 10mo agoParks and playgrounds increase the land value of the surrounding community. That results in higher LVT. That creates a virtuous cycle for the local government who is administering those taxpayer paid amenities, same as other form of infrastructure and amenities.