Barème de l’impôt sur la valeur foncière

Land value tax schedule

Purpose

Land values are created mostly by the community, its infrastructure and its growth, not by the owner. A tax on the unimproved value of land returns part of that value to the community, cannot be passed on by reducing the supply of land, and does not penalise building or improvement. This schedule sets the base, valuation, rate and use of revenue.

Article 1. Tax base

1. The tax is levied each year on every holder of land in the polity's territory, whether owner or long-term leaseholder.
2. The base is the land value: the price the site would fetch in an open market if it were vacant and unimproved, but with its permitted uses, location and access to public infrastructure.
3. Buildings, plantings, drainage and other improvements are excluded from the base.

Article 2. Valuation

1. The valuation office values all land every two years, using recent sales, ground rents and a published method.
2. Values are published as a map open to all, site by site.
3. The valuation office is independent of the council and of the treasury; its head is appointed for a fixed term of six years.

Article 3. Rate

1. The rate is set by the assembly each year within a band of 1% to 5% of land value.
2. The rate is uniform for all land of the same permitted use. Agricultural, residential and commercial land may have different rates within the band.
3. Payment is due in four quarterly instalments.

Article 4. Exemptions

Land used for public roads, parks, places of worship and land held in a community land trust for permanently affordable housing is exempt. Any other exemption requires a two-thirds majority and lapses after five years.

Article 5. Transition and hardship

1. Where the tax replaces other levies, it is phased in over five years, with the old levies reduced as the new rate rises.
2. A household whose land tax exceeds a set share of its income may defer payment. Deferred tax accrues as a charge on the land at the reserve-fund rate and is paid when the land is sold or passes on death.
3. Holders may appeal a valuation within 60 days to the valuation tribunal. The tax is paid on the old value pending the decision, with adjustment afterwards.

Article 6. Use of revenue

1. Revenue is applied first to the maintenance of public infrastructure whose presence creates land value.
2. Of the remainder, at least half is paid out as an equal citizens' dividend to every resident member each year; the rest goes to the general budget.
3. The treasury publishes yearly the revenue, the dividend per person and the change in total land value.

Article 7. Safeguards

1. The rate band in Article 3 may be changed only by the amendment rule.
2. The valuation office may not take part in decisions on zoning or permits.
3. Changes to permitted uses that raise a site's value by more than a quarter are recorded on the published map with the decision that caused them.