Over the past century, various forms of land value tax (LVT) have been implemented in 20
municipalities across Pennsylvania (PA). Beginning in 1913 with the gradual exemption of
building values from taxation in Pittsburgh and Scranton, it took until the 1980s and 1990s
before a flurry of PA cities adopted revenue-neutral transitions towards taxing land at higher
rates than buildings and other improvements (LVT shifts). On average, these split-rate
municipalities applied a mill rate on land values that was nearly eight times the tax rate on
structures. Altoona, a city of 44,000 nestled in the Appalachian Mountains, even saw a pure
land value tax between 2011 and 2016.
Looking for realistic solutions to issues of escalating rents, scarce housing supply, struggling
commercial districts, blight and urban sprawl, there is rising interest in LVT throughout the world,
from California to Michigan, from New Zealand to Ukraine. Municipal leaders considering
whether a LVT shift might be right for their city rightfully ask what outcomes they can expect to
see. Thankfully, the Pennsylvania LVT experience provides an ideal setting for conducting
research into the effects of LVT on a number of relevant outcomes such as business activity,
construction & renovation, urban sprawl, and property values.
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