3.1.2 c) After full and fair valuation is in place, consider moving to a land-value based tax system to increase the cost of owning vacant land.
Makes sense. If properties are going to be assessed using selling prices, it’s going to be easier to figure out what the unimproved land values are worth, since you’ll have more up-to-date price information from vacant lot sales.
Here’s how they present the concept in the Plan:
3.1.2.c Definition | Land-ValueTax System (LVT): A land-value tax system taxes land at a higher rate than improvements to land such as structures. Property tax assessments on developments or improvements to land can be seen as a deterrent to development and an incentive to keep land vacant. Pittsburgh and Harrisburg both use a hybrid version of LVT.
If you want to learn more about land value taxation, you should come out to this event on Tuesday in Harrisburg. LVT is one of the smartest, most underused progressive policy ideas in the municipal government tool kit. If your town’s not using it, ask them why.