[pyrados]

This is true, however it was still a property tax (appreciation of course is due to land but the disincentive on improvements is still there), it was poorly administered (long periods between assessments) and it was during the extreme inflation of the 70's.

This is definitely an issue with levying LVT at fairly low rates. Granted, at the time it was relatively high but it wasn't high enough. The 'ideal' LVT would bring down the price of land -considerably-, close to $0. The fact that land still has a large selling price means it is still largely financed with loans, and sensitive to interest rate adjustments.