Better Assessments & Better Incentives
Driving sustainable and equitable growth through fair tax policy.
Better Assessments
Property taxes should be fairly assessed and transparent.
Two similar properties should not have large variety in assessments which create inequitable tax bills. At the same time, assessments should accurately reflect the degree of differences between properties. Property in more desirable locations should be assessed higher than those in less desirable locations.
Assessments should be easy to access and evaluate for accuracy.
We help local governments understand and evaluate their property assessments.
Better Incentives
Property taxes punish development.
Every new building, new unit, renovation faces higher taxes.
Meanwhile, landowners can speculate on vacant or underutilized land as value appreciates.
We must find a way to align incentives, so landowners are incentivized to build and discouraged from idleness.
We can split property taxes.
Keep revenues neutral and split the property tax into one on land and one improvements on the land.
Improvements will be valued based on the value of the buildings and other development on top of the land.
Land will be valued solely based on the location. Location in urban centers has higher demand, and therefore higher prices.
Shifting the burden onto land aligns incentives.
Reward productivity, discourage passivity.
By decreasing the rate on the improvements, landowners can develop bigger and better.
By offsetting decreased revenue through an increased rate on land, landowners will profit less from idleness, encouraging land to be put to a good use.