By Zach Zeliff

Must this be the place? It’s a good mural and a great song, but seeing such good public art surrounded by a sea of surface parking is….. depressing. Is this the highest and best use of a large lot Downtown, directly across the street from one of the highest rent apartment buildings in the region? Is the amount of property tax, or lack thereof, generated helping the fiscal health of the City? How can we encourage a better future for the block surrounding the mural? 

Luckily, there may be a solution to this problem that generates more housing, economic development, and tax fairness. It’s also the policy with maybe the highest amount of internet fanatics: the land value tax.

An idea most associated with 19th century thinker and NYC mayoral candidate Henry George, a land value tax—also sometimes called a split-rate tax—assesses property taxes according to the value of a piece of land rather than the value of any building constructed on top of it. This means that underused land in high value places—like surface lots downtown—typically have a higher proportionate share in taxes while residential properties in lower land-value neighborhoods typically see their assessments go down. This incentivizes highest and best use in high value Downtown lots—if empty or underutilized parcels pay the same tax as fully developed land, then owners are more likely to build or sell to someone who can.

The Center for Land Economics recently published a study of how a hypothetical land value tax would affect tax rates in Syracuse. It found that most tax increases be downtown while the highest share of tax decreases would occur in the south and west sides. They also published this really interesting map charting land values in the city.

Greg Miller, author of the report, is coming to present his research as part of our In The Salt City Policy Happy Hours. October 8th at Harvey’s, we will gather starting at 5 with the presentation starting at 5:30. Please join us, the first two events have been a mixture of fun and informative with a good conversation, this should be the same!