MORE ON THE NEUTRALITY OF LAND TAXATION

Abstract

The recent conclusions about the nonneutrality of land value taxation are shown not to invalidate the neutrality result for per unit land taxation (or even use-independent land value taxation, as in Vickrey's standard state scheme). Also the neutrality of current rental income taxation is shown to depend on time-invariant tax rates; if tax rates change over time, the timing of land development can be distorted in a way similar to that which occurs under current market value land taxation.