DEFINITION of 'Land Value Tax - LVT'

A tax on the value of a piece of land. Land value tax inherently makes up a portion of all real estate property tax; however, land value tax takes only the fair value of the land into account. The taxation of land is very straightforward, requiring only a valuation of the land.

BREAKING DOWN 'Land Value Tax - LVT'

Some argue that land value tax is the best tax in terms of economic efficiency. Since the availability of land is inelastic, the value of land is therefore determined by the rules of supply and demand.

Land value taxes are implemented in numerous countries around the world, including the United States, namely in Pennsylvania.

RELATED TERMS
  1. Land Value

    The value of a piece of property, including both the value of ...
  2. Land

    Property or real estate, not including buildings or equipment, ...
  3. Land Flip

    A fraudulent practice in the real estate business of selling ...
  4. Littoral Land

    Land that is located next to a pooled body of water. Littoral ...
  5. Land Trust

    A legal agreement where a trustee is appointed to maintain ownership ...
  6. Adverse Possession

    A principle of real estate law that allows a person who possesses ...
Related Articles
  1. Managing Wealth

    How to Keep a Land Investment From Going Bust

    Investing in land can yield big returns. But investors should consider their goals, as well as the following details, to make the deal a success.
  2. Investing

    Uncover The Next Real Estate Hot Spot

    Real estate land speculation is a way to get in on a hot investment before a boom hits.
  3. Investing

    Top 4 Things That Determine A Home's Value

    Your house depreciates over time, while the land beneath it is likely to do the opposite.
  4. Managing Wealth

    The Top 5 States Where Retirees Can Buy Cheap Land

    Buying vacant land for future gain is high-risk. Look for low prices in undeveloped areas likely to see a building boom in the near future. Here are five.
  5. Investing

    What Homebuyers Should Know Before Buying

    A physical structure depreciates over time, but the land underneath it appreciates.
  6. Investing

    Lands' End Looks to Athleisure Wear for Turnaround

    Hoping to reverse a four-year skid that has seen sales fall at an annual compounded rate of 5%, Lands' End (NASDAQ: LE) is pinning its growth hopes on the athleisure wear trend. The retailer ...
  7. Investing

    Understanding Real Estate

    Real estate is an encompassing term that refers to land, the buildings on that land, and its natural resources, such as crops and minerals.
  8. Investing

    How You Make Money In Real Estate

    No matter what anyone tells you, the basic ways that money is made through real estate haven’t changed in centuries.
  9. Investing

    How You Make Money In Real Estate

    If you're interested in the real estate game, make sure you know what factors will affect whether you make money or not.
  10. Managing Wealth

    The $1M Question: What to Do With a Windfall?

    If you're on the receiving end of a $1M windfall, what would you do with it? Here's what a survey found; the results may surprise you.
RELATED FAQS
  1. How are real estate taxes calculated?

    Find out how real estate taxes are calculated; failure to pay these taxes that can be a substantial annual expense can lead ... Read Answer >>
  2. What is property, plant and equipment, and what does it mean?

    Property, plant and equipment (PP&E) is a term that describes an account on the balance sheet. The PP&E account is a summation ... Read Answer >>
  3. What's the difference between the marginal tax rate system and a flat tax?

    Find out about the difference between marginal tax rates and flat taxes. Gain insights on both systems and the arguments ... Read Answer >>
  4. If a telecommunication company wants to build a tower on my land how much should ...

    Get help in understanding how much income it is possible to receive for leasing land to a telecommunications company for ... Read Answer >>
Hot Definitions
  1. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  2. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  3. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  4. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  5. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  6. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
Trading Center