Imagine if land was taxed at a higher rate if vacant or underutilized, and at a lower rate with higher and better community uses. It’s not a new concept. In fact, cities like Spokane, WA are exploring Land Value Tax to promote community growth.
Land Value Tax (LVT) is a valuable tool to address affordable housing, inequality and climate. Instead of taxing buildings more than the land they occupy, LVT is based on the land itself. Currently, a crumbling surface parking lot or blighted, abandoned building can be profitable with low property taxes and minimal to no maintenance. The value of the land is not realized by the community, given an unsightly asphalt lot instead of housing, sustainable development, or urban green space. Our current property tax system incentivizes greedy land speculators to fence off their undeveloped properties, waiting for the land value to increase. Meanwhile people experiencing homelessness sleep on sidewalks.
Sierra Club hosted a webinar with local and national experts about the need to #LegalizeLVT. View the webinar recording, and read more about LVT at Sierra Club’s blog or at MinnPost.
What You Can Do:
1. Ask your state legislators to legalize Land Value Tax in Minnesota
2. Get involved with Sierra Club’s Land Use & Transportation team
Blog post by Evan Vail of the Land Use & Transportation team, and Sustain Saint Paul