Photo credit: WeBike Rochester
By Rich Nymoen
Is there a vacant or blighted property in your neighborhood? Maybe a half-empty parking lot or abandoned gas station? Most cities are riddled with properties that land speculators are holding until their value increases. But while they wait, we all suffer.
Land Value Tax (LVT) policy can help. Under this tax, the land value of a property is taxed at a higher rate than the building’s value. This shift puts pressure on property owners to use or sell their vacant and underutilized sites. Those who build intensively on sites are not penalized with higher taxes as they would be by a conventional property tax.
This can lead to more vibrant, sustainable communities by replacing empty lots with grocery stores, shops, and much needed housing. Building up a little (instead of sprawling out) protects green space around our cities and towns, and allows shorter trips for walking, biking, driving, or hopping on a bus or train.
Unfortunately, Land Value Tax is illegal in Minnesota. This is why Sierra Club is partnering with the Minnesota Chapter of Common Ground USA, Neighbors for More Neighbors, Sustain Saint Paul, and other groups to educate state legislators on the importance of legalizing LVT as an optional tool for municipalities across the state to use if they choose.
In 2023, we successfully passed major transportation funding. Our next step is to pass supportive land use policies like LVT.
Rich Nymoen is the president of Common Ground USA Minnesota Chapter and a member of the Land Use & Transportation Team. He can be reached at minnesotacommonground@gmail.com