Land Value Tax

Image from @simple-pleasure

Currently, owners of empty lots and lots with run down buildings on them pay less taxes than owners of lots with well kept buildings on them. This makes it cheap for speculators to hold on to abandoned buildings and vacant lots, hoping to sell them for a profit in the future instead of putting them to use. With a land value tax we would tax the land rather than what is built on it, which makes it more expensive to hold on to unused land. Most actual home owners would see a tax decrease or not be effected because they wouldn’t pay taxes on their homes and would instead pay a higher tax on their land.

Pittsburgh used to have a split rate tax, which is almost as good as a land value tax because it supports taxing land at a higher rate than buildings. But in 2001 we made a wrong turn and got rid of it for a reason that had noting to do with the effectiveness. You can read more in our explainer or check out the videos below!