Wednesday, March 31, 2004
New 'site value tax' proposal would hit homeowners
From the Irish Times:
A new tax on the value of land, as part of a range of measures to tackle the problems of the housing market, is proposed in a report being written by the National Economic and Social Council (NESC).
...
The tax would be based on the site value, rather than the value of land and buildings, and would apply to all types of property, including residential, commercial and development land.
The report argues that such a tax would encourage the early release of land by property-owners for housing and promote high-density development. It could also lower the price of land, it says, thus making it cheaper for the State to provide social and affordable housing. The revenue could contribute to local infrastructure development.
From the Irish Times:
A new tax on the value of land, as part of a range of measures to tackle the problems of the housing market, is proposed in a report being written by the National Economic and Social Council (NESC).
...
The tax would be based on the site value, rather than the value of land and buildings, and would apply to all types of property, including residential, commercial and development land.
The report argues that such a tax would encourage the early release of land by property-owners for housing and promote high-density development. It could also lower the price of land, it says, thus making it cheaper for the State to provide social and affordable housing. The revenue could contribute to local infrastructure development.
Monday, March 29, 2004
Sea of red tape ahead as council tax faces the axe
In the UK, the 'Balance of Funding review' from the Treasury and the Office of the Deputy Prime Minister is looking at a range of options: reformed council tax, localised non-domestic rates, local income tax, localised vehicle excise duty, localised stamp duty on property transfers, local sales tax, local land value tax, tourist [hotel bed] taxes, a particular form of local sales tax, charging for/trading of local authority services, local charges for street works by utilities, local congestion charging, and environmental taxes.
In fact, land taxes are the most popular form of local tax, according to John Loughlin and Steve Martin in their book International Lessons - Balance of Funding Issues , published last year. Of 25 countries surveyed by the Council of Europe in 2000, 23 had some form of property tax, whether on land or buildings or both.
'Land value tax', an idea being pushed by the Labour Land Campaign, could emerge as a more serious runner than LIT. It charges people on the notional rental value of their property, and would apply to unoccupied and unused land. (Council Tax can reward non-use of property by being waived on empty buildings.)
The rental value under Land Value Tax would reflect such issues as the fertile soil of a farm, the central location of homes in inner London and the transport, education and other infrastructure benefits near each property.
From The Observer, 1 February 2004
In the UK, the 'Balance of Funding review' from the Treasury and the Office of the Deputy Prime Minister is looking at a range of options: reformed council tax, localised non-domestic rates, local income tax, localised vehicle excise duty, localised stamp duty on property transfers, local sales tax, local land value tax, tourist [hotel bed] taxes, a particular form of local sales tax, charging for/trading of local authority services, local charges for street works by utilities, local congestion charging, and environmental taxes.
In fact, land taxes are the most popular form of local tax, according to John Loughlin and Steve Martin in their book International Lessons - Balance of Funding Issues , published last year. Of 25 countries surveyed by the Council of Europe in 2000, 23 had some form of property tax, whether on land or buildings or both.
'Land value tax', an idea being pushed by the Labour Land Campaign, could emerge as a more serious runner than LIT. It charges people on the notional rental value of their property, and would apply to unoccupied and unused land. (Council Tax can reward non-use of property by being waived on empty buildings.)
The rental value under Land Value Tax would reflect such issues as the fertile soil of a farm, the central location of homes in inner London and the transport, education and other infrastructure benefits near each property.
From The Observer, 1 February 2004
Tax avoidence
Richard Adams suggests that Tony Blair's case against higher taxes - that they do not produce higher yields - follows a logic that, taken to its extreme, is an argument for no tax at all (You must be having a Laffer, January 22). Not quite. What follows from Blair's logic is that we should get rid of taxes that can be evaded or avoided - such as taxes on income, for example - and replace them by a tax on the rental value of land, since land cannot be hidden, shifted around the country or removed to a tax haven. Further, a tax on the rental value of land cannot be ducked by any trick of law or accountancy.
Henry Law
Land Value Taxation Campaign
From Guardian Letters, 24 January 2004
Richard Adams suggests that Tony Blair's case against higher taxes - that they do not produce higher yields - follows a logic that, taken to its extreme, is an argument for no tax at all (You must be having a Laffer, January 22). Not quite. What follows from Blair's logic is that we should get rid of taxes that can be evaded or avoided - such as taxes on income, for example - and replace them by a tax on the rental value of land, since land cannot be hidden, shifted around the country or removed to a tax haven. Further, a tax on the rental value of land cannot be ducked by any trick of law or accountancy.
Henry Law
Land Value Taxation Campaign
From Guardian Letters, 24 January 2004
Saturday, March 27, 2004
Russia: Is Putin A Georgist?
Standard Schaefer: An Interview with Michael Hudson on Putin's Russia
The question now being asked is whether the oligarchs will sell off ownership of Russia's natural resources to the West as they bail out of Russia, or whether the nation will rescue itself from the insider privatizations by recapturing the revenue and wealth taken by the oligarchs.
In the West one hears mainly of reversing and renationalizing the giveaways of the 1990s. But in Russia itself Sergei Glaziev, Dmitri Lvov and other economists are proposing a rent-tax to recapture the oil and gas, land and mineral rent for the economy. If this route is taken, it will represent a revival of a "third way" of economic development proposed already in 1991 by many Western economists, including a substantial number of Nobel Economics Prize-winners. The remarkable thing is how little attention in the West this fiscal and monetary policy has received.
Under Dr. Lvov's guidance, Dr. Hudson has made numerous trips to Russia to address Duma committees and other groups with regard to shifting Russia to a rent-tax policy.
Standard Schaefer: An Interview with Michael Hudson on Putin's Russia
The question now being asked is whether the oligarchs will sell off ownership of Russia's natural resources to the West as they bail out of Russia, or whether the nation will rescue itself from the insider privatizations by recapturing the revenue and wealth taken by the oligarchs.
In the West one hears mainly of reversing and renationalizing the giveaways of the 1990s. But in Russia itself Sergei Glaziev, Dmitri Lvov and other economists are proposing a rent-tax to recapture the oil and gas, land and mineral rent for the economy. If this route is taken, it will represent a revival of a "third way" of economic development proposed already in 1991 by many Western economists, including a substantial number of Nobel Economics Prize-winners. The remarkable thing is how little attention in the West this fiscal and monetary policy has received.
Under Dr. Lvov's guidance, Dr. Hudson has made numerous trips to Russia to address Duma committees and other groups with regard to shifting Russia to a rent-tax policy.
Scotsman.com - How to raise money from our wealth of land
Many cities, states and countries base local revenue wholly or partly on land tax. Their systems are based on surveys of value and ownership but in the opinion of professionals Scotland’s land is already so well catalogued that, apart from some uncertainty over a few titles, which sequestration for non- a full survey would not be required and a system using capital values or assessed rentals could be readily developed.
The same opinion is that there would be less work involved in introducing a land tax than in the long overdue rebanding of domestic properties. Replacing council tax with land tax is seen as straight forward and some also believe that it could be extended without difficulty to replace wholly or partly the unified business rate on non-domestic properties.
Surely a system robustly founded on the tangible, physical certainty of land, fairer and more broadly based than the present mess and with the advantages that it encourages utilisation of the land up to at least its taxable level while discouraging disuse and hoarding, must be attractive to politicians?
Land value tax has impeccable socialist credentials having been adopted as policy by the Scottish Labour Party in June 1888. So why is it being studiously ignored by the Scottish Executive?
Many cities, states and countries base local revenue wholly or partly on land tax. Their systems are based on surveys of value and ownership but in the opinion of professionals Scotland’s land is already so well catalogued that, apart from some uncertainty over a few titles, which sequestration for non- a full survey would not be required and a system using capital values or assessed rentals could be readily developed.
The same opinion is that there would be less work involved in introducing a land tax than in the long overdue rebanding of domestic properties. Replacing council tax with land tax is seen as straight forward and some also believe that it could be extended without difficulty to replace wholly or partly the unified business rate on non-domestic properties.
Surely a system robustly founded on the tangible, physical certainty of land, fairer and more broadly based than the present mess and with the advantages that it encourages utilisation of the land up to at least its taxable level while discouraging disuse and hoarding, must be attractive to politicians?
Land value tax has impeccable socialist credentials having been adopted as policy by the Scottish Labour Party in June 1888. So why is it being studiously ignored by the Scottish Executive?
China: Tax plan to slash housing prices
BEIJING, Mar.15 (Xinhuanet) -- High housing prices have often shattered the dreams of many ordinary Chinese people wanting to buy decent private homes to improve their living conditions.
But a new tax plan could soon give them hope.
The government is considering imposing a unified real estate tax, which experts say will help slash present housing prices by as much as 50 per cent.
BEIJING, Mar.15 (Xinhuanet) -- High housing prices have often shattered the dreams of many ordinary Chinese people wanting to buy decent private homes to improve their living conditions.
But a new tax plan could soon give them hope.
The government is considering imposing a unified real estate tax, which experts say will help slash present housing prices by as much as 50 per cent.
Green Party Press Release:
The Green Party gave a tentative welcome to the budget announcement that the Treasury was looking seriously at land value taxation, closely mirroring long-held Green policy .
Green Party economics spokesperson Molly Scott Cato said today:
"The Green Party has been campaigning for a change in the law on land value taxation for many years. The real wealth in this country is not made from earning but from owning and our tax system should reflect that. Yet again the Government has finally taken notice of solid Green policy.
From BBC Website:
Glimmer of light
The Scottish Green Party's finance spokesman Mark Ballard said he was "very pleased" that the Treasury was looking seriously at land value taxation (LVT) - which his party wants to see replacing the council tax.
Mr Brown had encouraged all parties to study recommendations of a report which highlights the benefits of capturing the windfall gains created by increasing land values.
Mr Ballard said: "As he pointed out there is at present no tax on the unearned increment in land values when undeveloped land is granted planning permission.
"The council tax is being increasingly discredited and I believe there is a growing interest in LVT as an alternative to local government finance."
He described the move as a glimmer of light in an otherwise poor Budget for the environment.
(See also: Greens unveil land tax proposals)
From The Scotsman:
Greens' Bill axes 'unfair' council tax
GREEN MSPs have launched a Bill in the Scottish Parliament to replace council tax and business rates with a new tax based on land values.
The party said its proposed system would be fairer and more effective, benefit people on low incomes and bring social, economic and environmental benefits.
It would also discourage developers from hanging on to vacant land for long periods, waiting for an upturn in property prices.
Land value taxation is already used in many other countries, including Denmark, South Africa, Jamaica, some Australian states and some cities in the United States.
Lothians Green MSP Mark Ballard, party spokesman on finance and local government, said: "I am pleased to be putting forward this progressive Bill to reform the unfair council tax and business rates.
"It will target the asset-rich, not the poorest in society, and is an inherently fairer system all round.
"It will drive efficiency, make more land available and resist speculative planning proposals which distort the market."
The Green Party gave a tentative welcome to the budget announcement that the Treasury was looking seriously at land value taxation, closely mirroring long-held Green policy .
Green Party economics spokesperson Molly Scott Cato said today:
"The Green Party has been campaigning for a change in the law on land value taxation for many years. The real wealth in this country is not made from earning but from owning and our tax system should reflect that. Yet again the Government has finally taken notice of solid Green policy.
From BBC Website:
Glimmer of light
The Scottish Green Party's finance spokesman Mark Ballard said he was "very pleased" that the Treasury was looking seriously at land value taxation (LVT) - which his party wants to see replacing the council tax.
Mr Brown had encouraged all parties to study recommendations of a report which highlights the benefits of capturing the windfall gains created by increasing land values.
Mr Ballard said: "As he pointed out there is at present no tax on the unearned increment in land values when undeveloped land is granted planning permission.
"The council tax is being increasingly discredited and I believe there is a growing interest in LVT as an alternative to local government finance."
He described the move as a glimmer of light in an otherwise poor Budget for the environment.
(See also: Greens unveil land tax proposals)
From The Scotsman:
Greens' Bill axes 'unfair' council tax
GREEN MSPs have launched a Bill in the Scottish Parliament to replace council tax and business rates with a new tax based on land values.
The party said its proposed system would be fairer and more effective, benefit people on low incomes and bring social, economic and environmental benefits.
It would also discourage developers from hanging on to vacant land for long periods, waiting for an upturn in property prices.
Land value taxation is already used in many other countries, including Denmark, South Africa, Jamaica, some Australian states and some cities in the United States.
Lothians Green MSP Mark Ballard, party spokesman on finance and local government, said: "I am pleased to be putting forward this progressive Bill to reform the unfair council tax and business rates.
"It will target the asset-rich, not the poorest in society, and is an inherently fairer system all round.
"It will drive efficiency, make more land available and resist speculative planning proposals which distort the market."
Friday, March 19, 2004
"Government to study land value taxation"
Henry George Foundation Press Release Wednesday, 17th March 2004
LAND VALUE TAXATION BACK ON UK MAINSTREAM AGENDA
In his budget speech today, Gordon Brown, Chancellor of the Exchequer, announced that the UK Treasury is to look at taxing land values.
He encouraged all parties to study the recommendations of The Barker Review of Housing Supply, commissioned by the Treasury. The Review highlights the benefits of capturing the windfall gains created by rising land values.
Mr. Brown said: “While the business rate sets a tax on developed properties, the Barker Report states that there is none on the unearned increment in land values when undeveloped land is granted planning permission.”
Brown confirmed that the Treasury would be looking further into the matter, saying “because this is a long-term issue for both housing and stability, the way forward is not only to consult widely but to see whether a long term consensus can be agreed.”
Peter Gibb, chief executive of the Henry George Foundation, said:
"While we are wary of the echoes here of Labour's flawed past attempts to understand and introduce rent-for-revenue principles, we very much welcome the Chancellor's announcement."
Brown’s budget comes only a few days after Scottish Green Party finance spokesperson Mark Ballard MSP launched his bill in the Scottish parliament. The Bill would reform property taxation to base it on land values.
Ballard said: “I am very glad to see that the UK government is beginning to understand the sound fiscal principles which underlie the proposal to tax land values.”
ENDS
Henry George Foundation Press Release Wednesday, 17th March 2004
LAND VALUE TAXATION BACK ON UK MAINSTREAM AGENDA
In his budget speech today, Gordon Brown, Chancellor of the Exchequer, announced that the UK Treasury is to look at taxing land values.
He encouraged all parties to study the recommendations of The Barker Review of Housing Supply, commissioned by the Treasury. The Review highlights the benefits of capturing the windfall gains created by rising land values.
Mr. Brown said: “While the business rate sets a tax on developed properties, the Barker Report states that there is none on the unearned increment in land values when undeveloped land is granted planning permission.”
Brown confirmed that the Treasury would be looking further into the matter, saying “because this is a long-term issue for both housing and stability, the way forward is not only to consult widely but to see whether a long term consensus can be agreed.”
Peter Gibb, chief executive of the Henry George Foundation, said:
"While we are wary of the echoes here of Labour's flawed past attempts to understand and introduce rent-for-revenue principles, we very much welcome the Chancellor's announcement."
Brown’s budget comes only a few days after Scottish Green Party finance spokesperson Mark Ballard MSP launched his bill in the Scottish parliament. The Bill would reform property taxation to base it on land values.
Ballard said: “I am very glad to see that the UK government is beginning to understand the sound fiscal principles which underlie the proposal to tax land values.”
ENDS
Thursday, March 18, 2004
From Philadelphia...
Shift to land tax studied (10 March 2004):
EASTON -- City officials are renewing efforts to base city property taxes more on land and less on buildings.
The proposed shift would yield small savings at first for homeowners but encourage improvements to rundown and vacant city properties, Joshua Vincent said. Vincent advocates so-called land-value taxation as director of the nonprofit, Philadelphia-based Center for the Study of Economics.
...
Pennsylvania is home to 19 cities and boroughs that have moved to land value taxation, along with the Aliquippa School District and the Pittsburgh Downtown Improvement District, Vincent said.
Other municipalities have adopted the change and then repealed it, Vincent said. That happened in Hazleton, Connellsville and Uniontown because officials there shifted property taxes to land from buildings too quickly.
Vincent advocates a gradual shift, such as dropping the tax on buildings by 15 to 20 percent in the first year and raising the tax on land by that same amount.
In coming years, when the shift could be increased, Vincent also recommends a new assessment for city properties. Based on Northampton County data, he said residential properties are taxed too highly in relation to commercial properties. A reassessment would yield greater tax savings for homeowners, he said.
Under the shift to land-value taxation, property owners who improve their buildings would not be taxed more because of an increased assessment of value. On the opposite side, owners of large rental properties and vacant land would have more incentive to make improvements or sell their properties for development.
Street's tax-plan praise is surprise (9 March 2004):
In a speech to the Greater Philadelphia Chamber of Commerce, Street endorsed proposals to tax local businesses only on sales within the city, to tax property based on 100 percent of the actual market rate, and to move toward "land-value taxation," which would base property taxes on the value of the land rather than a building.
That proposal is designed to discourage abandonment of property by making it more expensive to own boarded-up buildings.
Tax cuts, development fund included in Street's budget (17 March 2004)
More to come...
Shift to land tax studied (10 March 2004):
EASTON -- City officials are renewing efforts to base city property taxes more on land and less on buildings.
The proposed shift would yield small savings at first for homeowners but encourage improvements to rundown and vacant city properties, Joshua Vincent said. Vincent advocates so-called land-value taxation as director of the nonprofit, Philadelphia-based Center for the Study of Economics.
...
Pennsylvania is home to 19 cities and boroughs that have moved to land value taxation, along with the Aliquippa School District and the Pittsburgh Downtown Improvement District, Vincent said.
Other municipalities have adopted the change and then repealed it, Vincent said. That happened in Hazleton, Connellsville and Uniontown because officials there shifted property taxes to land from buildings too quickly.
Vincent advocates a gradual shift, such as dropping the tax on buildings by 15 to 20 percent in the first year and raising the tax on land by that same amount.
In coming years, when the shift could be increased, Vincent also recommends a new assessment for city properties. Based on Northampton County data, he said residential properties are taxed too highly in relation to commercial properties. A reassessment would yield greater tax savings for homeowners, he said.
Under the shift to land-value taxation, property owners who improve their buildings would not be taxed more because of an increased assessment of value. On the opposite side, owners of large rental properties and vacant land would have more incentive to make improvements or sell their properties for development.
Street's tax-plan praise is surprise (9 March 2004):
In a speech to the Greater Philadelphia Chamber of Commerce, Street endorsed proposals to tax local businesses only on sales within the city, to tax property based on 100 percent of the actual market rate, and to move toward "land-value taxation," which would base property taxes on the value of the land rather than a building.
That proposal is designed to discourage abandonment of property by making it more expensive to own boarded-up buildings.
Tax cuts, development fund included in Street's budget (17 March 2004)
More to come...
Git is sham
BBC NEWS: Villagers may face quitting homes
Independent: Millionaire evicts tenants to put Devon village on market
Telegraph: Homeless fear as village landlord sells up
BBC NEWS: Villagers may face quitting homes
Independent: Millionaire evicts tenants to put Devon village on market
Telegraph: Homeless fear as village landlord sells up
