Raising taxes on land value under a split-rate system can increase land value per acre. Residential land is more sensitive to these changes than commercial or industrial land.

Using municipality-level panel data, the study shows that raising the tax rate on land while lowering the tax rate on buildings leads to an increase in land value per acre. Further, this impact differs between residential land and commercial and industrial land. Residential land appears to be more responsive to changes in the tax differential than commercial and industrial land.