'Land rich, income poor' people pose an obstacle for land value taxation, as they stand to face higher tax burdens.

"Specifically, people who are “land rich and income poor” pose a problem when considering a switch to LVT. One of the key motivators for LVT is to create a situation where those with low incomes bear lower incidence. However, in urban areas where land value has grown significantly in a relatively short amount of time there are undoubtedly people who live in homes near urban centers that earn relatively low incomes. For these homeowners, LVT would likely increase their tax incidence. However, measures such as delaying a switch to LVT until death or sale and implementing a lower LVT/RMV ratio for overburdened landowners are policy measures that could correct for these situations and are discussed in the “Mitigation” section below."

theoretical


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