Personal tools
Assessment Exemption for ImprovementsLand Value Tax (LVT) is a way of taxing land using a change in tax rates. For example, a drop of 10% in the building tax rate would require that revenue loss be made up by an increase in the tax rate on land values. The direct effect is to put a greater reliance on publicly created value (land) rather than privately created wealth (buildings, commerce or wages). A higher tax on land has the acknowledged effect of removing the distortions on markets that traditional taxes create. Assessment Exemption on Improvements (AXI) is slightly different. Put simply, a blanket permanent abatement of a certain dollar amount on a building is put into effect. The overall tax rate then rises accordingly, with a greater impact on land value. For example, if someone’s building is worth $50,000 and the AXI is $50,000 then they will pay no tax on the building. If the building is worth $500,000 then the owner would pay tax on $450,000. This has the effect of sometimes dramatically reducing tax burden on lower valued properties, most often residential properties. An alternative to basic shifting of property tax rates. We have included a Power Point presentation that shows the history of the two-rate or "graded" property tax in Pittsburgh, its rise and fall. The last half of the presentation explains the differences between that tool and AXI, with results in maps and charts for Pittsburgh.
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