English and Irish Agree on this: Levy Location Value
|June 26, 2014||Posted by Staff under Good Press|
These two 2014 excerpts on LVT, Jun 26, are of NICVA by Elizabeth Hendron and of The Guardian by Simon Goodley and Leila Haddou.
Tax Land, Not Houses
NICVA’s Centre for Economic Empowerment has launched a new report into the feasibility of introducing a land value tax in Northern Ireland.
Under the current system of taxation, charges are levied on land and the improvements – typically buildings – together, with no distinction made between the two.
Under a system of Land Value Tax, the charges would be levied on the land only, with improvements subject to zero or minimal taxation. If introduced it could mean that land bought by developers but not developed, and agricultural land could be taxed for the first time.
This would shift the burden of real estate taxation towards less productive activities, particularly speculation on land, which is a major source of property bubbles. LVT would be a progressive tax, with the most deprived paying least.
Seamus McAleavey, chief executive of NICVA said, “House prices in Northern Ireland are on the rise again. As before, this has been widely welcomed as an indication of economic progress. It is important to ensure that any price rises are a sustainable result of real economic growth, rather than speculation. In this context, this report is crucial reading.”
Inflated property values merely increase indebtedness and reduce economic output.
People who have low incomes and modest homes should continue to receive rates relief, as currently applied. People with low incomes but with expensive properties could defer payment until the property is sold.
Tesco Hoarding Land that could Build 15,000 Homes
Tesco, the UK’s largest supermarket chain, is hoarding land and buildings covering an area big enough to build 15,000 homes, a Guardian analysis has revealed.
While the aggregate size of Tesco’s land bank could theoretically be used to build many homes, it is distributed across Britain, with some plots likely to be unsuitable for housing.
Some of the portfolio is residential property or rented to other retailers, but the majority is undeveloped. Tesco last year said its UK property empire was worth £20bn.
The hoarding of development land for long periods has also drawn criticism in the house building sector – which owns far larger plots of land than the supermarkets.
Fred Harrison, an economist who has called for land to be taxed as if the sites were in use, added: “Given there is a market demand for it and we know the value, you can charge the owners for the public services that make the land valuable. Then they lose money if they just sit on it with no revenue”.