Land Value Tax Study

Land Value Tax Study Mission

One of the goals of the civic engagement committee is to work with local community leaders on issues that support yep!'s mission. By working with community members from all political and social perspectives in a results oriented manner, we hope to educate and empower the citizens of the region with information that can be used to resolve long standing issues. The goal of this initiative is to secure the funding necessary to conduct a comprehensive study that will determine the positive or negative impact of a land value taxation system in the City of Erie.

Land Value Tax Background Information

According to the Center for the Study of Economics, Land Value Taxation (LVT) is described as a "type of real property taxation. Whereas the typical real property tax taxes both land and the improvements on the land at the same rate, land value taxation taxes land at a higher rate while simultaneously reducing, or even eliminating, the tax on improvements."

Although most municipalities use the same millage rate on land and buildings to levy property taxes, many cities in the Commonwealth of Pennsylvania have implemented LVT with different levels of success. By taxing the value of land at a different rate than the value of the buildings on that land, the theory of LVT states that it will encourage the improvement of existing buildings and will allow the free market to work in such a manner that will provide a greater incentive to build on vacant parcels. In Pennsylvania, the city of Harrisburg is the most widely quoted example of the potential success of a LVT implementation.

Land Value Tax in the City of Erie

For several decades, the City of Erie has investigated the potential impact of switching to a land value based tax system. As recently as 1990, Erie city council passed an ordinance that commissioned the creation of land value taxation. However, due to several concerns including the lack of a comprehensive study that showed the impact of LVT, the ordinance was vetoed by Mayor Joyce Savocchio.

Realizing the potential impact that LVT could have on the City of Erie, the issue was brought to the attention of City Council by community leader Chris Borgia and council unanimously passed a resolution on July 5, 2006 supporting the commission of a study that would identify the advantages and drawbacks of LVT compared to a single rate tax.

Learn more about Land Value Taxation

To help educate our membership and the community on the potential impact of LVT and the current progress of the study, the civic engagement committee has posted several articles that explain the potential impact LVT could have on the City of Erie. Links and descriptions of these articles are located on the sidebar of this page. If you would like to be a part of LVT study committee, please send an e-mail to the chairman of the civic engagement committee Matt Wiertel.

Land Value Tax Study