The point of an LVT is to tax all those external factors that increase the value of the land, such as local amenities, zoning, etc. The idea is the only value added by owners of the property was the structure they built, that’s theirs, the rest of the value is in a sense un-earned. Much of it is due to government investment in infrastructure and facilities, for example. Taxing the social value is the intention.
But if a developer builds, say, an airport on some unattractive land outside of a city, they will create most of the value being taxed, right? The same is true to some extent for any structure.
