Land value tax

land taxland value taxationlandSingle TaxLand tax on the built-up propertiesland-value taxsingle tax on landtaxation of land valuesland valueland-tax
A land/location value tax (LVT), also called a site valuation tax, split rate tax, or site-value rating, is an ad valorem levy on the unimproved value of land.wikipedia
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Henry George

GeorgistGeorgeHenry George O'Shea
Many economists since Adam Smith and David Ricardo have advocated this tax, but it is most famously associated with Henry George, who argued that because the supply of land is fixed and its location value is created by communities and public works, the economic rent of land is the most logical source of public revenue. In his best-selling work Progress and Poverty (1879), Henry George argued that because the value of land depends on natural qualities combined with the economic activity of communities, including public investments, the economic rent of land was the best source of tax revenue. In the late 19th century followers of Henry George founded a single tax colony at Fairhope, Alabama.
The treatise investigates the paradox of increasing inequality and poverty amid economic and technological progress, the cyclic nature of industrialized economies, and the use of rent capture such as land value tax and other anti-monopoly reforms as a remedy for these and other social problems.

Progressive tax

progressiveprogressive taxationprogressive income tax
A land value tax is a progressive tax, in that the tax burden falls on titleholders in proportion to the value of locations, the ownership of which is highly correlated with overall wealth and income.
For example, a wealth or property tax, a sales tax on luxury goods, or the exemption of sales taxes on basic necessities, may be described as having progressive effects as it increases the tax burden of higher income families and reduces it on lower income families.

Taxation in Estonia

Estonia
Land value taxation is currently implemented throughout Denmark, Estonia, Lithuania, Russia, Singapore, and Taiwan; it has also been applied to smaller extents in subregions of Australia, Mexico (Mexicali), and the United States (e.g., Pennsylvania).
Estonia levies a Land Value Tax which is used to fund local municipalities.

Single tax

single land taxSingle Tax Partysingle-tax
In the context of land value taxation as a single tax (replacing all other taxes), some have argued that LVT alone cannot raise enough revenues.
A single tax is a system of taxation based mainly or exclusively on one tax, typically chosen for its special properties, often being a tax on land value.

Ad valorem tax

ad valoremad valorem'' taxad valorem'' taxes
A land/location value tax (LVT), also called a site valuation tax, split rate tax, or site-value rating, is an ad valorem levy on the unimproved value of land.
It was introduced by the Howard Government on 1 July 2000, replacing the previous federal wholesale sales tax system and designed to phase out the various state and territory taxes such as banking taxes, stamp duty and land value tax.

Economic rent

rentland rentrents
Many economists since Adam Smith and David Ricardo have advocated this tax, but it is most famously associated with Henry George, who argued that because the supply of land is fixed and its location value is created by communities and public works, the economic rent of land is the most logical source of public revenue. In his best-selling work Progress and Poverty (1879), Henry George argued that because the value of land depends on natural qualities combined with the economic activity of communities, including public investments, the economic rent of land was the best source of tax revenue.
Henry George, best known for his proposal for a single tax on land, defines rent as "the part of the produce that accrues to the owners of land (or other natural capabilities) by virtue of ownership" and as "the share of wealth given to landowners because they have an exclusive right to the use of those natural capabilities."

Taxation in Australia

Australian taxation systemcorporate taxationtaxation
Land value taxation is currently implemented throughout Denmark, Estonia, Lithuania, Russia, Singapore, and Taiwan; it has also been applied to smaller extents in subregions of Australia, Mexico (Mexicali), and the United States (e.g., Pennsylvania).
Local governments are typically funded largely by taxes on land value (council rates) on residential, industrial and commercial properties.

Land (economics)

landland economicsland economy
A land/location value tax (LVT), also called a site valuation tax, split rate tax, or site-value rating, is an ad valorem levy on the unimproved value of land. An American journalist, politician and political economist, he advocated a "Single Tax" on land that would eliminate the need for all other taxes.
Georgists hold that this implies a perfectly inelastic supply curve (i.e., zero elasticity), suggesting that a land value tax that recovers the rent of land for public purposes would not affect the opportunity cost of using land, but would instead only decrease the value of owning it.

Hide (unit)

hideshidehidage
During the Middle-Ages, in the West, the first regular and permanent land tax system was based on a unit of land known as the hide.
It was traditionally taken to be 120 acre, but was in fact a measure of value and tax assessment, including obligations for food-rent (feorm), maintenance and repair of bridges and fortifications, manpower for the army (fyrd), and (eventually) the geld land tax.

Ecotax

green tax shiftgreen taxenvironmental taxes
LVT is arguably an ecotax because it discourages the waste of prime locations, which are a finite resource.

Land value tax in the United States

early history of land value taxation in the United Statesland value taxland value taxation
The Physiocrats were highly influential in the early history of land value taxation in the United States.
Land value taxation (i.e. property tax applied only to the unimproved value of land) has a long history in the United States dating back from Physiocrat influence on Thomas Jefferson and Benjamin Franklin.

William Vickrey

William S. VickreyVickrey TurnstileWilliam Spencer Vickrey
Nobel Prize-winner William Vickrey believed that ""removing almost all business taxes, including property taxes on improvements, excepting only taxes reflecting the marginal social cost of public services rendered to specific activities, and replacing them with taxes on site values, would substantially improve the economic efficiency of the jurisdiction.""
In public economics, Vickrey extended the Georgist marginal cost pricing approach of Harold Hotelling and showed how public goods should be provided at marginal cost and capital investment outlays financed with land value tax.

Stephen R. Reed

Stephen ReedSteve ReedSteven R. Reed
This policy was credited by mayor Stephen R. Reed with reducing the number of vacant structures in downtown Harrisburg from around 4,200 in 1982 to fewer than 500.
Harrisburg is also known worldwide for its use of land value taxation.

Free market

free-marketfree enterprisefree markets
Murray Rothbard later raised similar concerns, claiming that no government can fairly assess value, and that this can only be determined by a free market.
The American economist and social philosopher Henry George, the most famous proponent of this thesis, wanted to accomplish this through a high land value tax that replaces all other taxes.

Harrisburg, Pennsylvania

HarrisburgHarrisburg, PAHarrisburg, Pa.
For example, Harrisburg, Pennsylvania in the United States has taxed land at a rate six times that on improvements since 1975.
Harrisburg has taxed land at a rate six times that on improvements since 1975, and this policy has been credited by its former mayor Stephen R. Reed, as well as by the city's former city manager during the 1980s, with reducing the number of vacant structures located in downtown Harrisburg from about 4,200 in 1982 to fewer than 500 in 1995.

Value capture

capture
LVT is the purest implementation of the public finance principle known as value capture.
Although it is not always talked about as such, the most common value capture mechanism is the general real property tax, with no special features other than regular assessment of market value; this is because the common real estate tax includes the less known land value tax.

Georgism

GeorgistSingle TaxGeorgists
An American journalist, politician and political economist, he advocated a "Single Tax" on land that would eliminate the need for all other taxes.
Georgists argue that revenues from a land value tax (LVT) can be used to reduce or eliminate existing taxes (for example, on income, trade, or purchases) that are unfair and inefficient.

Geolibertarianism

geolibertariansgeolibertariangeoanarchism
This proposal was the origin of the citizen's dividend advocated by Geolibertarianism.
Therefore, landholders ought to pay compensation according to the rental value set by the free market, absent any improvements, to the community for the civil right of usufruct (that is, legally recognized exclusive possession with restrictions on property abuse) or otherwise fee simple title with no such restrictions.

Taxation in Russia

payments by individual citizensRussiatax
Land value taxation is currently implemented throughout Denmark, Estonia, Lithuania, Russia, Singapore, and Taiwan; it has also been applied to smaller extents in subregions of Australia, Mexico (Mexicali), and the United States (e.g., Pennsylvania).
All regional and local taxes in Russia are asset-related: property tax, vehicle tax, land tax and tax on gambling businesses.

Charles Alexandre de Calonne

CalonneVicomte de CalonneCharles-Alexandre de Calonne
It influenced contemporary statesmen, such as Charles Alexandre de Calonne.
At its heart was a new land value tax that would replace the old vingtième taxes and finally sweep away the fiscal exemptions of the privileged orders.

Fred Foldvary

Fred E. FoldvaryFoldvary, F. E.
Fred Foldvary stated that the tax encourages landowners to develop vacant/underused land or to sell it.
The three basic themes of Foldvary's writing are the universal ethic, cellular democracy, and public revenue from land rent.

Land Tax Reform (Japan 1873)

Land Tax ReformLand Tax Reform of 1873land and tax laws
After the 1868 Meiji Restoration in Japan, Land Tax Reform was undertaken.
It was a major restructuring of the previous land taxation system, and established the right of private land ownership in Japan for the first time.

Progress and Poverty

In his best-selling work Progress and Poverty (1879), Henry George argued that because the value of land depends on natural qualities combined with the economic activity of communities, including public investments, the economic rent of land was the best source of tax revenue.
George's primary fiscal tool was a land value tax on the annual value of land held as private property.

David Lloyd George

Lloyd GeorgeRt Hon David Lloyd GeorgeDavid Lloyd George, 1st Earl Lloyd-George of Dwyfor
In the United Kingdom, LVT was an important part of the platform of the Liberal Party during the early part of the twentieth century: David Lloyd George and H. H. Asquith proposed "to free the land that from this very hour is shackled with the chains of feudalism."
In 1909 Lloyd George introduced his People's Budget, imposing a 20% tax on the unearned increase in value of land, payable at death of the owner or sale of the land, and ½ d. on undeveloped land and minerals, increased death duties, a rise in income tax, and the introduction of Supertax on income over £3,000.

Fairhope, Alabama

FairhopeFairhope, ALFair Hope
In the late 19th century followers of Henry George founded a single tax colony at Fairhope, Alabama.
Fairhope was founded in November 1894 on the site of the former Alabama City as a radical Georgist "Single-Tax" colony by the Fairhope Industrial Association, a group of 28 followers of economist Henry George who had incorporated earlier that year in Des Moines, Iowa.