Research and Studies

• Land Value Tax Report for Lanesborough, Massachusetts in 2010
• Alternative Implementation Plan for Land Value Tax 

Land Value Taxation (LVT) can be a tool to promote economic justice, responsible stewardship of the earth and its resources, and as a way to promote growth where wanted. 

LVT is an alternative to the current system of income, business and other taxes and indeed can be counted a true tax reform.  

In the strict public policy application, Land Value Taxation (also known as split-rate real property taxation, and two-tiered real property taxation) is a type of real property taxation.  Whereas the typical real property tax taxes both land and the improvements on the land at the same rate, land value taxation taxes land at a higher rate while simultaneously reducing, or even eliminating, the tax on improvements.

For example, Clairton in Allegheny County, Pennsylvania has a tax rate of 103 mills on land and 4.32 mills on buildings rather than 29.5 mills on both (City and School District combined).

Why Would a Community Implement Land Value Taxation?

• A shift to LVT, even when structured in a revenue-neutral manner, usually results in net tax reductions for the vast majority of residents.
• The problem of inaccurate or radically higher assessments is reduced because of the reduction in reliance on the building portion of the property tax.
• The damage that taxes like sales and income taxes do to working families and local commerce can be lessened.
• By reducing or eliminating the tax on improvements, there is a greater incentive to build, to build with higher quality materials, to maintain, to avoid blight, and to redevelop economically depressed areas.
• Cities are almost always on the “short end of the stick” when economic development dollars are handed out.  This program helps achieve the same goals with no public investment.
• When cities DO get permission to give out tax abatements, they lead to a revenue loss to the community with no assured payoff later.  LVT is purely revenue neutral to the city.  There is no tax shifting to citizens and property owners who have already done their bit.
• A tax on land also has the advantage of being a "value capture tax".  A new public works project may make adjacent land go up considerably in value, and thus, with a tax on land values, the tax on adjacent land goes up.  Thus, the new public improvements would be paid for by those most benefited by the new public improvements -- i.e., those whose land value went up most.
• A tax on land has been shown to result in better land use patterns and more in-fill development.  This has the benefit of reducing sprawl.
• Several Nobel Prize winners in economics have stated their approval of government revenue being raised from taxes on land.
• Support for LVT cuts across political lines.  Free-market economists like how it reduces distortions in economic decision-making.  Environmentalists like how it reduces sprawl and helps fund public transportation.  Developers appreciate how it makes new homes more affordable for their customers.  Citizens like the reduction in taxes.