Detroit considering changing to Land Value Tax, Duggan says

[Richard]

^ that’s socialism at its best.

So based on that I could buy a vacant lot in a desirable neighborhood and build a million dollar house and pay the same tax rate as the $50,000 house next door.

That is revenue suicide for the city and actually impossible to implement,what about all of the recent buildings that have received tax incentives and 30 year tax capture based on the current value,it wipes billions in property values out with a stroke of a pen.

So a house in EEV is no longer worth $500k it is only worth the value of the dirt it sits on,if that dirt is only worth $150K no bank in the world is going to allow a mortgage.

They did say other cities have implemented it and here is one response

"I don't think it's had any serious impact on development in the city," he said. "I can't think of a whole lot of development that might have been spurred by this."He added that Allentown wasn't a city with a lot of empty land, but many tracts that were underutilized when the tax structure changed are still underutilized now.
"I don't think it made a whole lot of difference either way," Glazier said. "At the margins, it might nudge them toward development, but at the end of the day, it's not the deciding factor."

[K-slice]

^ that’s socialism at its best.

So based on that I could buy a vacant lot in a desirable neighborhood and build a million dollar house and pay the same tax rate as the $50,000 house next door.

That is revenue suicide for the city and actually impossible to implement,what about all of the recent buildings that have received tax incentives and 30 year tax capture based on the current value,it wipes billions in property values out with a stroke of a pen.

So a house in EEV is no longer worth $500k it is only worth the value of the dirt it sits on,if that dirt is only worth $150K no bank in the world is going to allow a mortgage.

They did say other cities have implemented it and here is one response

"I don't think it's had any serious impact on development in the city," he said. "I can't think of a whole lot of development that might have been spurred by this."He added that Allentown wasn't a city with a lot of empty land, but many tracts that were underutilized when the tax structure changed are still underutilized now.
"I don't think it made a whole lot of difference either way," Glazier said. "At the margins, it might nudge them toward development, but at the end of the day, it's not the deciding factor."

This is utter nonsense. You clearly have zero grasp on the difference between taxable vale, assessed value, and market value. No mortgage company looks at the taxable or assessed value when considering how much they will lend on a piece of real estate.

What exactly would be the issue with someone building a million dollar home next to an older, less expensive one? That's exactly the development we're trying to encourage. Would it be better if the hypothetical lot stay vacant and non-productive? What's the downside to a vacant lot being built on? Not to mention, what "desirable neighborhood" has homes going for $50K currently? That's nothing more than a straw man.

The downtown land being built on and the companies receiving incentives and tax captures would be virtually unaffected, as this land would undoubtedly be valued very highly considering it's location under the proposed system, just as it would under the current system post-construction.


Throwing out the word "socialism" is just the cherry on the nonsense sundae.