Department of Accounting, Neeley School of Business, Texas Christian University
The least wealthy are mostly likely to face tax increases via LVT.
The median average change in tax liability after revenue-neutral LVT was -28.6%.
A revenue-neutral LVT (in a Texas municipality) would decrease average tax liabilities for single-family properties by 30%, shifting them onto commercial & industrial property classes.
LVT is theorized to be more efficient than the property tax because the supply of land is fixed, and thus will not be affected by taxation.
LVT (in this Texas municipality) begins as mildly regressive, and becomes lightly progressive over time.
Under LVT, horizontal equity is worst for the lowest-valued properties.
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Evidence on the Distributional Effects of a Land Value Tax on Residential Households
Land Value Tax