[corpoposter]

LVT is a tax on the value of the land specifically, not a traditional property tax. This encourages development on valuable land that is currently being put to unproductive uses.

For example, if you own a lot in a downtown metro which is a parking lot you pay low property taxes because parking lots have low property values. You are disincentivised to develop it because your property tax would go up. Opposite incentives with a LVT.

[kart23]

I understand that, but what should the actual rate of the LVT be? If the LVT rate is too high, nobody will want to develop that parking lot at all because the taxes outweigh the possible profit. And if they are lower than land appreciation, speculation is encouraged.