Madam, - Herb Meyer (August 28th) referred to site value taxation. If this could become a subject of a serious national debate, it would be a blessing.
What is land value taxation? It is a method of raising public revenue by means of an annual tax on the rental value of land. It would replace, not add to, existing taxes.
The value of every parcel of land in Ireland would be assessed regularly and the land value tax levied as a percentage of those assessed values. "Land" here means the site alone, not counting any improvements. The value of buildings, crops, drainage or any other works which people have erected or carried out on each plot of land would be ignored, but it could be assumed that all neighbouring properties were developed as at the time of valuation; other things being equal, a vacant site in a row of houses would be assessed at the same value as the adjacent sites occupied by houses.
The valuation would be based on market evidence, in accordance with the optimum use of the land within the planning regulations. If the current planning restriction on the use were altered, the site would be reassessed.
The principal advantages would be:
1. A more efficient land market.
2. Impossible to pass on in higher prices, lower wages or higher rent.
3. Less urban sprawl.
It will be evident that the introduction of land value taxation would have a fundamental effect on the working of the housing market and its associated problems. Would Mr Parlon have the courage to consider this matter? - Yours, etc.,
KONRAD DECHANT, Arran Quay, Dublin 7.