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. Littoral Land

    Land that is located next to a pooled body of water. Littoral ...
  4. Marginal Land

    Arid and generally unhospitable land. Marginal land usually has ...
  5. Hard Landing

    An economic state wherein the economy is slowing down sharply ...
  6. Property Tax

    A tax assessed on real estate by the local government. The tax ...
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

    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.
  3. Insights

    What To Do When The Government Wants Your Land

    Find out how the government evaluates your land, what your options are and how to get the most from it.
  4. 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 ...
  5. 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.
  6. Managing Wealth

    3 Of The Most Lucrative Land Deals In History

    Some modern real estate purchases may seem overly expensive, but they are nowhere close to the priciest land deals in history.
  7. 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.
  8. Investing

    Land's End CEO Abruptly Resigns After Rough Tenure

    Land's End (NASDAQ: LE) announced Monday morning that its CEO had abruptly resigned her position after less than two years on the job. In a statement, Federica Marchionni described it as a mutual ...
  9. Managing Wealth

    Buy a House in the Philippines: A How-To Guide

    Foreign-ownership regulations make it a little tricky, but plan right and you can have a home in paradise.
  10. Investing

    Now’s The Time To Buy The Land Drillers

    As both natural gas and oil drilling activity continues to increase onshore, the land drillers will benefit. For investors, the firms doing the heavy lifting continue to see rising rig counts ...
RELATED FAQS
  1. 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 >>
  2. What inputs are considered to be factors of production?

    Learn what the economic term "factors of production" means, what the four categories of factors of production are and what ... Read Answer >>
Hot Definitions
  1. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  4. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  6. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
Trading Center