Land value taxation could create stronger incentives to repeal restrictive zoning policies, while repealing restrictive zoning would enable further beneficial effects of land value taxation.

“Many people replied that Land Value Tax is useless until or unless you first fix zoning. First of all, Georgists are natural allies in fixing restrictive zoning policies. This is something they definitely want and will fight for. Second, one of the reasons for restrictive zoning policies is broken incentives. A city doesn't have a huge incentive to repeal restrictive zoning policies because it isn't hurting their tax base. According to Georgists, a city whose tax base is land value has well-aligned incentives. It is incentivized to maximize land value by making the city a more desirable place to live, which also raises their tax base. It is dis-incentivized to over-assess or over-tax the land, however, because that will cause people to leave, which will lower their land values and also their tax base. One of the principle things that depresses land values and the tax base in this scenario is restrictive zoning. I personally don't care whether you first pass LVT or first repeal restrictive zoning, you can and should do both. Either one helps the other along.”

theoretical