[RP TownTalk] LVT is good public policy

Tue Apr 11 17:01:01 UTC 2006

I agree with Chris, David and Jack.  The Land Value Tax (LVT) is an economic-driven structure that will go far in developing the kind of community we want...rather than what outside developers want.  It eliminates developers being able to maximize their profits by externalizing all the negatives onto the public weal.  

David's example is completely illustrative.  If Jamal had to pay the LVT, which is based on the full-use value of the property, he would lose lots of money by leaving it as a ghost-town center while he awaits the speculative real estate market to reap him millions of dollars as a reward under the present tax system that combines land and building assessments into one property value.  

Who creates real estate value?  The community does, in all sorts of way:  location, infrastructure, pubilc services, residents cum customers, well-run governing, commercial and contract law, investment incentives, etc.  Yet, our community (and neighboring businesses like Bruce's and Dumm's) get punished by Jamal's greed and "the community be damned" philosophy.  

Like a voice in the wilderness, Jack Jones has preached the LVT gospel for some two decades, with disciples like David, Chris, myself and others increasingly hearing and adopting this approach as a good community-building policy for our town.  And to reassure those who fear changes to the status quo (which has left us with a ghost-town center for 20 years), don't worry.  Most residents' property taxes would be the same or less, because homes on residential lots are already the highest and best use for such land.    

Ken Laureys
4718 Riverdale Rd

-----Original Message-----
From: TownTalk-bounces at riverdale-park.org
[mailto:TownTalk-bounces at riverdale-park.org]On Behalf Of CHRISTINA DAVIS
Sent: Tuesday, April 11, 2006 8:09 AM
To: bruce.wernek at mindspring.com; 'David Hiles';
TownTalk at riverdale-park.org
Subject: Re: [RP TownTalk] m-utc report from this week

Hello Bruce, David, and others:

Actually, most of the residential property owners would see a tax decrease
(Jack has the tax rolls run periodically to show this by individual
address). No town council has ever voted against this. I thought it was a
bad idea until we had the historic districts in place. Once that happened, I
tried to bring it up on several occasions. However, most people did not want
to be the first in the state to try something new. . .

Chris Davis

-----Original Message-----
From: TownTalk-bounces at riverdale-park.org
[mailto:TownTalk-bounces at riverdale-park.org] On Behalf Of
bruce.wernek at mindspring.com
Sent: Tuesday, April 11, 2006 7:54 AM
To: David Hiles; TownTalk at riverdale-park.org
Subject: Re: [RP TownTalk] m-utc report from this week

David

Won't this LVT increase our property taxes as well?  Riverdale Park has one
of the highest property tax rates in the state.  I am not in favor of any
increases in this rate.

Bruce

-----Original Message-----
>From: David Hiles <hilesd at mindspring.com>
>Sent: Apr 10, 2006 10:54 PM
>To: TownTalk at riverdale-park.org
>Subject: [RP TownTalk]  m-utc report from this week
>
>begin snip
>
>"- lot coverage:  zoning calls for 60 percent of the lot to be covered
>with occupied space.  the bank would cover a minimal amount of the
>lot.  The bank plan was for a 4,000 sf building and 5 drive through
>lanes."
>
>end snip
>
>			Some problems have solutions.
>
>
>
>
>PROBLEM: There is a lot of underused property in our area.
>
>The bank proposal puts a minimum cost structure on the property.  It 
>will be easy to clear when the the time is right to reap speculative 
>gains.  The town center may be being held back for the higher rents 
>that will result when EYA is built out.  Add on the Dumms Corner 
>project and the Villas at Erco Place and you can see a lot of new 
>customers for tenants of local space.  Why fill the space now?
>
>
>
>
>SOLUTION: Tax property in Riverdale Park as if it is fully used.
>
>A parking lot or a five story condo with underground parking would have 
>the same tax valuation, if valuation was based on the highest use of 
>the property.  This approach pressures speculative property holders to 
>sell to people who will fully build out the property. If you don't 
>build out the property, you still pay a fair share of the cost of local 
>government.
>
>This tax strategy is legal for towns and cities in Maryland.  It is 
>called the Land Value Tax (LVT).  Your Riverdale Park Council could 
>change to the LVT as part of the next budget cycle.  Alternatively, it 
>could be phased in over a few years.  Each year's phase could follow a 
>nonbinding plan laid out by this council.  Councilman Kiernan may raise 
>technical reasons for it being impossible to implement or phase in. He 
>is mistaken, yet loud.
>
>You have an LVT expert living in Riverdale Park.  His name is Jack 
>Jones.
>
>
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