Simulations of Multnomah County, Oregon, suggest that a LVT would provide a more equitable tax structure, incentivize development of underutilized properties, and discourage land speculation.

"Ultimately, land-based property tax systems, whether a split-rate LVT or an AXI building exemption tax, do what they are designed to do—place more of the tax burden on wealthier land-owners, and encourage the highest and best use of land. Based on the simulations performed on the INE and OSE communities, a LVT would provide a more equitable tax structure, incentivize structure upgrading and development of underutilized properties, and discourage “holding” land for speculative purposes. Furthermore, the potential downsides of the tax policy—such as increasing taxes on low-income homeowners—can be mitigated with carefully crafted legislation. In short, many of the inequities created by Measure 5 and 50 would likely be reversed if a LVT were implemented in the Portland region."

empirical


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