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Land Value Tax (LVT)

What is 'Land Value Tax - LVT'

A tax on the value of a piece of land. Land value tax inherently makes up a portion of all real estate property tax; however, land value tax takes only the fair value of the land into account. The taxation of land is very straightforward, requiring only a valuation of the land.

Explaining 'Land Value Tax - LVT'

Some argue that land value tax is the best tax in terms of economic efficiency. Since the availability of land is inelastic, the value of land is therefore determined by the rules of supply and demand.

Land value taxes are implemented in numerous countries around the world, including the United States, namely in Pennsylvania.


Further Reading


Land Value Taxation and other Measures for Raising Public Investment Revenue: A Comparative Study
papers.ssrn.com [PDF]
… OLS) hedonic regression approach, we firstly examine the relations between the sale prices of circa … 0.22% for a property in the second tier with a market price above £195,000 … Another reason is that land value taxation, in recent decades, has been increasingly rationalised as a …

Sustainable urban development and land value taxation: The case of EstoniaSustainable urban development and land value taxation: The case of Estonia
www.sciencedirect.com [PDF]
… OLS) hedonic regression approach, we firstly examine the relations between the sale prices of circa … 0.22% for a property in the second tier with a market price above £195,000 … Another reason is that land value taxation, in recent decades, has been increasingly rationalised as a …

Financing transit systems through value capture: An annotated bibliographyFinancing transit systems through value capture: An annotated bibliography
onlinelibrary.wiley.com [PDF]
… OLS) hedonic regression approach, we firstly examine the relations between the sale prices of circa … 0.22% for a property in the second tier with a market price above £195,000 … Another reason is that land value taxation, in recent decades, has been increasingly rationalised as a …

Macroeconomic Case for a Land Value Tax Reform in IrelandMacroeconomic Case for a Land Value Tax Reform in Ireland
papers.ssrn.com [PDF]
… OLS) hedonic regression approach, we firstly examine the relations between the sale prices of circa … 0.22% for a property in the second tier with a market price above £195,000 … Another reason is that land value taxation, in recent decades, has been increasingly rationalised as a …



Q&A About Land Value Tax (LVT)


What is a land value tax?

A tax on the value of a piece of land.

How does land value tax inherently make up a portion of all real estate property taxes?

Land value tax inherently makes up a portion of all real estate property taxes because it takes into account only the fair value of the land and not any other factors.

Why is it important to take into account only the fair value of the land with regard to taxation?

It is important to take into account only the fair value of the land with regard to taxation because doing so allows for an accurate assessment of how much revenue can be generated from taxing that particular piece or parcel of land.

What are some arguments in favor of implementing LVT?

Some argue that LVT is best in terms of economic efficiency, since LVT inherently assesses how much revenue can be generated from taxing that particular piece or parcel and taking into account its location, size, etc., rather than assessing how much revenue can be generated from taxing that particular piece or parcel based on what type it is (i.e., residential vs commercial). Others argue that LVT encourages productive use by making sure people pay for what they actually use rather than paying for things they don't need/use (i.e., if you own 10 acres but only live on one acre, you would pay more under an LVT system than under our current system). Also, proponents argue that LVT encourages conservation by making sure people pay for what they actually use rather than paying for things they don't need/use (i.e., if you own 10 acres but only live on one acre, you would pay more under an LVT system than under our current system). Finally, others argue that since everyone benefits from public goods such as roads and schools - even those who do not directly contribute - should help

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