Local and state policymakers can thus use sound economic principles to generate revenue while facilitating prosperity, for example by:
- Making sure that vacant land is assessed and taxed no less than what existing law provides.
- Revising real estate assessments or tax rates so that a greater proportion of the tax burden falls on underused parcels, less on parcels that are fully developed in accordance with existing plans and policies.
- Avoiding tax increases on sales or income by instead raising the effective tax rate on site value.
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