this post was submitted on 24 Sep 2023
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Cities don’t tax only based on the potential for what land could be doing, but instead include taxes on improvements to the land as well. As a result, there’s incentive to sprawl rather than pressure to densify.
Hmmm so you're saying we need height and depth tax incentives?
Yes that’s part of it. Another part is encouraging more permissive, inclusive, mixed use zoning to better reflect the potential optimal use of the land, and switching from property taxes to land value taxes to apply pressure to reach that ideal.
The way to achieve this is with a land value tax. Undeveloped land and developed land are taxed the same, so the owner is incentivised to maximize the development to make as much money as possible to offset the LVT.