By Vernon K. Walker
Have you ever noticed an abandoned home or a dilapidated commercial building in your neighborhood? Most cities in the United States are riddled with properties that land speculators are holding until their value increases. It is the people who live in those neighborhoods who suffer the most from the underutilized land.
There is a policy that can help address the presence of blighted and abandoned properties in the community. Land Valuation Tax (LTV) is a property tax system that focuses on the value of land itself rather than the structures or improvements on it. This approach incentivizes the productive use of land and discourages speculation and urban sprawl.
The benefits of LVT are that it encourages development by taxing only the land value. Property owners are incentivized to develop underutilized parcels, which can lead to more efficient land use and increased housing availability. LVT also reduces speculation because property owners who hold onto undeveloped land become less financially advantageous. LVT can also lead to more sustainable urban planning and development practices as it would encourage the productive use of land.
There are organizations like Common Ground USA that are supportive of LVT. Common Ground USA is an all-volunteer organization that promotes land value tax shifts, rent-sharing land trusts, and other commons-based approaches to social, environmental, and economic issues. The advocacy for LVT aligns well with the goals of Common Ground. By promoting LVT, Common Ground can further its mission to create more equitable and sustainable communities. The focus on land value encourages responsible development that serves community needs, supports affordable housing, and minimizes negative environmental impacts.
In 2011, the organization Common Ground Minnesota was formed, following a national conference, sponsored by the University of Minnesota’s Humphrey School, that focused on land value tax shifts, rent-sharing land trusts, and other commons-based approaches to public policy. Rich Nymoen who is the president of Common Ground Minnesota is also a director of the Robert Schalkenbach Foundation.
In 2016, Common Ground Minnesota introduced a bill in the Statehouse that would allow cities in Minnesota to create Land Value Tax Districts. The Tax Districts enable cities to pass ordinances that, first, identify specific geographic areas or parcels that would be in an LVT district. The district could be citywide or just a corridor or neighborhood.
Since 2011, Common Ground USA Minnesota has formed partnerships with other organizations like the Sierra Club, Neighbors for More Neighbors, Sustain Saint Paul, and other groups to educate state legislators on the importance of legalizing LVT as an optional tool for municipalities across the state to use if they choose.
In 2019, Common Ground Minnesota along with partner organizations started to host an annual event that is designed to educate the public about LVT. Since 2020, these events have been held virtually. This year’s virtual event will be on December 5th and it will include a panel of dynamic speakers, including the Executive Director of the Robert Schalkenbach Foundation, Josie Faass. The url link to register for the event is as followed : https://act.sierraclub.org/events/details?formcampaignid=701Po00000RK44sIAD
The on-the-ground advocacy efforts in Minnesota have resulted in the progress of the LVT bill moving forward in recent legislative sessions. In 2020, The chief author of a LVT was Rep. Steve Elkins and he has promoted it since then, especially after the damage to property that followed George Floyd’s murder in 2020.
In 2024, House Taxes Chair Rep. Aisha Gomez championed the passage of the LVT bill in the House and championed its passage in the conference committee with the Senate. Unfortunately, it did not pass both chambers, but the state legislature came closer than ever to legalizing LVT. During the 2024 state election cycle for the House of Representatives District 61A, Katie Jones was elected for the first time and she is a public supporter of LVT.This has given the LVT movement and a sign of growing interest in LVT. LVT will help transform our communities with new, sustainable housing and development.
What gives Matt Leichter, who is both the treasurer and secretary at Common Ground Minnesota and a member of the Board of Directors at the Robert Schalkenbach Foundation, hope about an LVT bill passing in Minnesota is that LVT is spreading across Minneapolis independent of Common Ground Minnesota’s efforts. Matt says he is encouraged “there is a growing interest and groundswell” of support happening for LVT in Minnesota.
What gives Rich Nymoen hope that an LVT bill will pass in Minnesota is that: “The interest of YIMBY (Yes in My Backyard) groups in LVT is growing across the country. They (YIMBY) do an impressive job with organizing their members and elected officials to support bills that they are supportive of.”
