doc89 t1_j18w219 wrote
Reply to comment by flamehead2k1 in 29-Unit, Mixed-Use Project to be Built on Broad Street Diner Site - Rising Real Estate by RoughRhinos
Yes a property tax is essentially just a land value tax + an improvement tax.
Advocates of a land value tax think the land piece should be expanded and the improvement piece should be diminished/abolished.
flamehead2k1 t1_j19m9e8 wrote
I'm ok with tweaking the rates to tax land more but complete removal does shift a burden.
It isn't a punishment for developing a property the same way it isn't a punishment getting taxed on each additional dollar you earn.
Larger buildings with more occupants will require more services and should pay tax to help cover that.
Something like taxing land at X and taxing improvements at .25-.5X would motivate landholders to put that land into productive use but also raise revenue as the city takes on new residents who need services.
doc89 t1_j19ow9b wrote
>Larger buildings with more occupants will require more services and should pay tax to help cover that.
Remember that everyone in the building will presumably be paying city wage taxes and sales taxes, it's not like they are free-riding.
On balance most of the residents of market rate new housing are going to be contributing much more to the city budget than they are going to be drawing in expenses. We should encourage buildings like this as much as possible.
>Something like taxing land at X and taxing improvements at .25-.5X would motivate landholders to put that land into productive use but also raise revenue as the city takes on new residents who need services.
Most of the advocates of a land value tax would consider something like this a huge win, myself included.
flamehead2k1 t1_j19r8wz wrote
>Remember that everyone in the building will presumably be paying city wage taxes and sales taxes, it's not like they are free-riding.
That's true but I don't think we should further rely on city wage tax. It has seriously hurt our development and I don't think lower property taxes on high density housing is going to offset that enough.
The 10 year tax abatement is a temporary land value tax because it only includes the improvement portion.
I think between keeping this and encouraging the city to get rid of lots they are holding, we could do a great job infilling the city.
throwawaitnine t1_j199wvk wrote
And does the unfairness of raising taxes on people who can't afford to improve their property while lowering taxes on people who can improve their property register with you at all?
doc89 t1_j19ec7l wrote
Yes, it registers with me. I think the city would function better if people who can't afford to develop their undeveloped properties sold those properties to people who can afford to develop it. In many cases these properties are worth several hundred thousand or millions of dollars. These are not "poor people" generally.
People sitting on empty lots/abandoned buildings because they either cannot afford to or don't want to develop is a major inhibitor of growth. This behavior should be discouraged through the tax code.
flamehead2k1 t1_j19mjsb wrote
>I think the city would function better if people who can't afford to develop their undeveloped properties sold those properties to people who can afford to develop it.
The biggest holder of unproductive property in the city is the city itself.
Don't need to dramatically change the tax code, just get those sheriff sales moving!
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