> The land value tax can’t be dodged by leaving nor can it be passed on to renters.
In what sense can't it be passed to renters? Esp if all landlords in the market were faced with a new land tax that they had not previously planned for, why would it not be passed on?
the rent is already priced to the maximum of purchasing power of the local renters ability.
if landlords were able to raise rent, they would have done that already as its pure profit for them. The fact that they can't, means they will have to eat any marginal tax imposed on them
some tenants who are on the margin of profitability will decide to close shop/relocate to Texas, which will free up rental space and drive down the prices
abeppu · · focus · HN ↗
In what sense can't it be passed to renters? Esp if all landlords in the market were faced with a new land tax that they had not previously planned for, why would it not be passed on?
bijowo1676 · · focus · HN ↗
if landlords were able to raise rent, they would have done that already as its pure profit for them. The fact that they can't, means they will have to eat any marginal tax imposed on them
throw2726264 · · focus · HN ↗
My company rents a space in a commercial lot, and the contract states the property tax is split among the tenants. It's separate from the rent.
Apparently this is common in commercial settings. I wouldn't be surprised to see this start happening for consumers.
bijowo1676 · · focus · HN ↗