Why site value tax is best option
Madam – We the undersigned support the introduction of a property tax based on the unimproved value of all residential sites, and all zoned land, ie the value that has not been created by the landowner. A tax on the unimproved portion of property value is a Site Value Tax (SVT).
SVT is the most equitable, efficient and effective property tax option for the Government. Unlike a conventional property tax that taxes the 'improved' portion of the property, ie the buildings and thus penalises construction, SVT is non- distortionary, creates no economic drag and has minimal adverse effects.
By capturing unearned value at an early stage of the property development process, SVT discourages empty buildings, land speculation, hoarding and over-zoning and diverts capital and available credit into productive investment and sustainable jobs.