The Taxation of Land Values

The Taxation of Land Values, often referred to as land value tax (LVT), is a system where property taxes are based on the value of the land itself rather than the buildings or improvements on it. This means that landowners pay taxes proportionate to the value of the land they own. The idea behind LVT is to encourage efficient land use and reduce speculation, making housing more affordable and promoting economic development. It shifts the tax burden away from productive activities, like construction, and focuses instead on the natural value of land, which benefits society as a whole.