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Land Value Tax Analysis: Simulating the Tax in Multnomah County

2019

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While LVT may be progressive on aggregate, there are situations where lower income home-owners may face increased costs. 'Land rich, income poor' people pose an obstacle for land value taxation, as they stand to face higher tax burdens. In Hawaii, LVT was abandoned because it was seen as a cause of overdevelopment in Waikiki in the 1970's. Research suggests the city of Pittsburgh repealed their split-rate LVT after nearly 100 years because of poor assessment and rate setting practices, despite evidence that LVT encouraged building activity. Farms could experience tax hikes under LVT since they provide value without development, and may require exemptions. Mitigation strategies for the undue tax burden placed by LVT on those with low incomes but high asset values include grandfathering such households into previous tax arrangements until death or sale of property, or a gradual phase-in of LVT.
Hoang The Nguyen Devin Bales Adam Rovang Peter Hulseman
Land Value Tax
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