How a land value tax can drive development

A proposed Minnesota land value tax could encourage development by changing how property is taxed, columnist Bill Lindeke argues. He points to the demolition of St. Paul’s Downtowner Woodfire Grill and the resulting drop in the parcel’s assessed value, which could cut its annual tax bill by more than $40,000. Under a land value tax, the land would be taxed separately from buildings, reducing incentives to leave valuable urban sites underused.