Transition to a land value based property tax system in state designated centers. Our current property tax system incentivizes development that is of the lowest value possible (typically low-quality construction, expansive parking, single story), while requiring vast amounts of expensive public infrastructure. Private investment in our built environment is discouraged, as property taxes increase with the value of the buildings. A land value tax is a type of property tax that imposes a higher rate on land than the improvements upon it, or in some instances it only applies to the land. This type of tax incentivizes building as efficiently as possible (mixed-use, multi-story) and yields a much higher return on investment for public infrastructure.
Submitted by:EAN Pitch 37 - Land Value Taxation in State Designated Centers