Tuesday

Report Number 30

If improvements were included in the land tax base, both developed and redevelopment would be likely to be scaled down. To the extent that less building occurred overall, there could be a reduction in the areas of cities. This change would not be desirable unless such a reduction were an object in itself. A tax on improvements would be likely to result in more land remaining undeveloped for urban purposes. Using umimproved capital values as a rates base has the advantage that it does not unduly discourage site development. Industry Commission 1993, p.276

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