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Does Georgism Work, Part 3: Can Unimproved Land Value be Accurately Assessed Separately From Buildings?

2021

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Land value taxation could create stronger incentives to repeal restrictive zoning policies, while repealing restrictive zoning would enable further beneficial effects of land value taxation. There are three main approaches to land assessment: the market approach, the cost approach, and the income approach. The majority of complaints over total land value assessments are over buildings and improvements, not land value. Taxing land at 85% builds in a comfortable margin for error to avoid potentially over-taxing land via mis-assessments. In 1911, J.J. Pasoriza, Houston's first Hispanic mayor, implemented a short-lived assessment and land tax policy known as "The Houston Plan". Recently developed mass appraisal methods for land assessment include multiple regression analysis, nonparametric kernel regressions, nonparametric adaptive regressions, semiparametric regressions, and the Innovative Land Valuation Model (iLVM).
Lars Doucet
Land Value Tax
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