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We can have one without the other

*Land Use

The Public Finance Effects of the Italian Ghost Buildings Program

Does informality hold back tax progressivity, that is, the capacity to tax the rich at a higher rate than the poor? The optimal (and fair) distribution of the tax burden has long been a key issue in both academic and policy circles.

In a new paper, I study whether reducing informality by tackling tax evasion leads policy makers to increase statutory tax progressivity. I take advantage of the Italian “Ghost Buildings” program, which is a policy that identified buildings not registered in the land registry.

Green Acres

Land Value Taxation (LVT) would level the playing field between new farmers and established mortgage-free farmers who presently have a huge (‘I was on the island first’) advantage.

By untaxing jobs and improvements, LVT would bias towards labor-intensive, structure-intensive, value-added farming; this would mean a bias towards organic farms (which both uses less land and uses it more intensively).

Moving the Land to Those Who Will Use It

“Could I begin life again, knowing what I now know, and had money to invest, I would buy every foot of land on the island of Manhattan.”


So wrote one of the original robber barons of the early nineteenth century. Yet almost 200 years later, the idea of holding land as a road to riches is alive and well in New York City. Though, of course, owning land is not so bad when the owner also uses it productively, provides employment, or builds affordable houses. But owning ground to make money on it while doing nothing to it is a problem New York doesn’t need.

In 2022, New York City is facing a new onslaught from the financial sector and their hedge fund billions. The city is enormous––700 square miles. But under the current cruel system, struggling families and small businesses have the nearly impossible task of finding a decent location to live or do business.

Vacant Land Usage and LLCs in New York City

LLCs are a way to combine the benefits of a traditional corporate structure with enhanced anonymity and reduced tax-liability, making them the ideal method for limiting risk while at the same time maximizing profits. This incentivizes land speculation rather than reinvestment in the land in the form of development. At the same time, LLCs provide no incentive to improve the properties they own, leaving many areas of NYC blighted and underutilized. This has obvious negative consequences for the neighborhoods in which they are located. Because LLC owners are anonymous, there is no way to exert pressure on them to either improve or sell their properties. This is why this tool is such an important means to increasing transparency and accountability in LLC ownership.

For there to be transparency and accountability, however, it’s important that the pertinent information is accessible to the public. Again, this is where the CPTR mapping tool comes in. It identifies vacant and underutilized parcels in NYC and illuminates them on an interactive map which allows anyone to see if a parcel is owned by an LLC or privately owned.

The LVT Playbook: So, How Do You Build a Land Value Tax?

Imagine speaking to a Mayor and City Council. They accept the idea of a two-rate land value tax (LVT), meaning a higher tax on land assessments and a lower tax on building assessments.

They agree LVT is a worthwhile change. However, keep in mind that the city will raise the same revenue as from its current one-rate property tax.