After hearing you explain it, I think you have me convinced that taxing only the land value is a fairer system and would encourage active development. My only concern is this:
- the land value of a plot of land in East Portland on which a single-family house sits may be worth $50,000
- a five-storey block of flats in, say, Downtown or even nearby like the Pearl District, Llyod, or whatever might have a land value of, for example, $100,000 (all numbers made up for illustrative purposes)
- the land on which the US Bank building may, for example, be worth $300,000
- the land on which Zenger Farms, a 10 ha. urban farm, sits may be worth $500,000 or more, because it's so big
Suppose the tax is 10% of the assessed land value. This means the owners of the East Portland house, the five-storey block of flats, the US Bank building, and Zenger Farms, would be assessed $5,000, $10,000, $30,000, and $50,000 respectively in tax. Now, I think I needn't point out that this doesn't seem fair. All of the plots of land are being used for "adequate" purposes, and yet it seems some of them are punished for that land use decision that in all isn't that bad. The urban farm is not exactly wasting land; it's providing valuable fresh produce to the city.
What I think would be better is a tiered system by categorising the traditional property tax bracket by land use:
- 0.1% for agricultural
- 0.5% or lower for medium or high-density buildings, such as skyscrapers, duplexes/triplexs/n-plexes, and mixed use zoning
- 1% for low-density commercial or single-family housing
- 5% for car parking
- 10% for vacant buildings
- 30% for empty lots
The numbers are arbitrary and illustrative only, but I think this allows for a more nuanced approach that allows for a finer-grained policy to be applied to discourage unwanted development
Computers will never consistently beat humans and humans will never consistently beat computers as snakes and ladders.
Or rock-paper-scissors, for that matter.