Effects on taxpayers

Typical effects on taxpayers of shifting part of the real estate tax (or other taxes) from improvements to land value:

  • Most homeowners see a small decrease in taxes.
  • Most active businesses see some decrease in taxes.
  • Owners of rural land and farms may see a small increase in taxes, or a decrease because development pressure focuses on infill instead of the urban fringe.
  • Owners of buildable vacant or underused land pay substantially higher taxes.
  • Renters are benefited because (a) some renters become able to purchase; and (b) elimination of taxes on buildings encourages more construction, including of apartments.

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