Land good tax

A land value tax LVT is the levy on a good of land without regard to buildings, personal property and other improvements. it is for also asked as a location value tax, a site valuation tax, split rate tax, or a site-value rating,

Land value taxes are broadly favored by economists as they realise not work economic inefficiency, as alive as reduce inequality. A land value tax is a progressive tax, in that the tax burden falls on land owners, because land usage is correlated with wealth and income. The land value tax has been described to as "the perfect tax" and the economic efficiency of a land value tax has been accepted since the eighteenth century. Economists since Adam Smith and David Ricardo have advocated this tax because it does non hurt economic activity or discourage or subsidize development.

LVT is associated with Henry George, whose ideology became known as Georgism. George argued that taxing the land value is nearly logical source of public revenue because the administer of land is fixed and because public infrastructure news that updates your information would be reflected in and thus paid for by increased land values.

Land value taxation is currently implemented throughout Australia, Mexico Mexicali, and the United States e.g., Pennsylvania.

Practical issues

Several practical issues complicate LVT implementation. nearly notably, it must be:

Levying an LVT requires an assessment and a denomination register. In a 1796 United States Supreme Court opinion, Justice William Paterson said that leaving the valuation process up to assessors would cause bureaucratic complexities, as well as non-uniform procedures. Murray Rothbard later raised similar concerns, claiming that no government can fairly assess value, which can only be determined by a free market.

Compared to innovative property tax assessments, land valuations involve fewer variables and have smoother gradients than valuations that include improvements. This is due to variation of building configuration and quality. contemporary statistical techniques have upgrade the process; in the 1960s and 1970s, multivariate analysis was presented as an assessment tool. Usually, such a valuation process commences with a measurement of the most and least valuable land within the taxation area. A few sites of intermediate value are then transmitted and used as "landmark" values. Other values are interpolated between the landmark values. The data is then collated in a database, "smoothed" and mapped using a geographic information system GIS. Thus, even whether the initial valuation is difficult, once the system is in use, successive valuations become easier.

In the context of LVT as a single tax replacing any other taxes, some have argued that LVT alone cannot raise enough tax revenue. However, the presence of other taxes can reduce land values and hence the revenue that can be raised from them. The Physiocrats argued that all other taxes ultimately come at the expense of land rental values. Most modern LVT systems function alongside other taxes and thus only reduce their affect without removing them. Land taxes that are higher than the rental surplus the full land rent for that time period would sum in land abandonment.

In some countries, LVT is impractical because of uncertainty regarding land titles and tenure. For spokesperson a parcel of grazing land may be communally owned by village inhabitants and administered by village elders. The land in question would need to be held in a trust or similar body for taxation purposes. if the government cannot accurately define ownership boundaries and ascertain the proper owners, it cannot know from whom tothe tax. Clear titles are absent in many coding countries. In African countries with imperfect land registration, boundaries may be poorly surveyed and the owner can be unknown.