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RE: [LandCafe] Why is no one talking about Greece?

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  • Harry Pollard
    David, The difficulties are overstated. You ll recall the Danes first did a land valuation of a large area, then followed it with a land valuation of the
    Message 1 of 9 , Jul 6 5:26 PM
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      David,

       

      The “difficulties” are overstated. You’ll recall the Danes first did a land valuation of a large area, then followed it with a land valuation of the whole country – for practice. This was at the end of World War I.

       

      With the advances in valuation techniques since then, there should be no problem to value the land of (say) a city. The first try would no doubt be pretty close. With each succeeding valuation, it should get better. In fact, with computers, they can be adjusting valuations continually as conditions shift.

       

      It would be necessary to publish land value maps with all valuations on a square yard basis so that landholders can compare valuations. That ensures protection against graft as well as putting all citizens in the picture – which us where they should be.

       

      Improvements are of little interest to the land valuer.

       

      Harry

       

      ******************************

      Henry George School of Los Angeles

      Box 655  Tujunga  CA 91042

      (818) 352-4141

      ******************************

       

      From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of David Reed
      Sent: Wednesday, July 06, 2011 12:34 AM
      To: land cafe
      Subject: [LandCafe] Why is no one talking abour Greece?

       

       

      The reason nobody on landcafe is talking about Greece is that the usual suspects prefer to have pettyfogging arguments about depreciation and difficulties of implementing LVT.

    • Bryan Kavanagh
      I agree, Harry. The logistics of valuing a country have improved greatly since the 17th century when William Petty valued Ireland accurately in thirteen
      Message 2 of 9 , Jul 6 6:31 PM
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        I agree, Harry.  The logistics of valuing a country have improved greatly since the 17th century when William Petty valued Ireland accurately in thirteen months using measuring chains. Although some still think technical difficulties remain, they only have to look sideways to Australia, New Zealand or South Africa where site values are produced accurately (on every property in the case of Australia) to see this isn’t so.

         

        It’s clearly only the political will we need, and the current state of world economies attest to the fact that it’s the plutocracy that has fashioned our political will. If we can break through their false premises and mindset we’re home and hosed. And what better time than during the current depression when a pathological economics has been exposed for the fraud it is?  Current responses to the depression – suggestions about regulating credit in future, meanwhile imposing austerity measures, or hyper-inflating the currency to reduce debt - remain attached like limpets to the current humbug. We know there’s a supremely better way, so others should get to hear about it, too.

         

        -          BK

        From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of Harry Pollard
        Sent: Thursday, 7 July 2011 10:26 AM
        To: LandCafe@yahoogroups.com
        Subject: RE: [LandCafe] Why is no one talking about Greece?

         

         

        David,

         

        The “difficulties” are overstated. You’ll recall the Danes first did a land valuation of a large area, then followed it with a land valuation of the whole country – for practice. This was at the end of World War I.

         

        With the advances in valuation techniques since then, there should be no problem to value the land of (say) a city. The first try would no doubt be pretty close. With each succeeding valuation, it should get better. In fact, with computers, they can be adjusting valuations continually as conditions shift.

         

        It would be necessary to publish land value maps with all valuations on a square yard basis so that landholders can compare valuations. That ensures protection against graft as well as putting all citizens in the picture – which us where they should be.

         

        Improvements are of little interest to the land valuer.

         

        Harry

         

        ******************************

        Henry George School of Los Angeles

        Box 655  Tujunga  CA 91042

        (818) 352-4141

        ******************************

         

        From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of David Reed
        Sent: Wednesday, July 06, 2011 12:34 AM
        To: land cafe
        Subject: [LandCafe] Why is no one talking abour Greece?

         

         

        The reason nobody on landcafe is talking about Greece is that the usual suspects prefer to have pettyfogging arguments about depreciation and difficulties of implementing LVT.

      • John David Kromkowski
        Is it possible to value land to a degree of accuracy that those paying the tax will agree by and large that it is fair and accurate? Of course, it is. But
        Message 3 of 9 , Jul 7 8:13 AM
        Is it possible to value land to a degree of accuracy that those paying the tax will agree by and large that it is fair and accurate?  Of course, it is.  But there is more that one thing that are going on in such an endeavor.

        There is the method, which on one hand has been made greatly easier with computers and advances in the statistically thinking.

        But on the other side, urbanization has greatly changed things because there are fewer empty lots for sale.  So the transactional data we have to work with begins with the sale of "real estate" which is a combination of improvement and land.  

        In addition, zoning must be thought of as a kind of metaphorical topographically limitation on use and hence, value.

        However, there is also a psychological element involved in convincing people that by and large the valuation are both fair and accurate.
        Because this is not just a game of Simcity.  Nor do we have benign and just philosopher kings running things.  Actual elected officials (human beings, in fact) who want to get reelected have to answer to other human beings who vote for them and contribute to their campaigns for reelection.

        Perceived "fairness" may be even more important than "absolute accuracy" - because after all "relative accuracy" will suffice.  For example, if all the assessments are 90% too low but they are "relatively" correct (i.e. the high values are high in comparison to the low values which are low).

        If you begin with the claim that people's homes (the structure where real families are living) are often basically worthless, then you will never convince anybody that your methodology is sound and fair.

        L + I  = Sales Price.  If all we know is sales price on improved lots, then we have to disaggregate and if in that process you tell someone that what they are living in which is not a condemned structure is not worth much of anything then you made a mistake. Because people do not pay to live in empty lots.  

        In the US, every single state has a property tax or some sort.  In some computer, there is a value for land for every parcel.  Sometimes, it is patently wrong (like when it is zero for a condo because the assesser's program is too poor written to figure it that the condo complex is not floating on the air.)  Sometimes, it is wrong because of incompetence.  Sometimes it is wrong because of corruption.  Sometimes it is wrong because of age - for example, nobody has bother to look at the figures since 1958 or thought that land valuation is a dynamic thing that changes over time both absolutely and relatively.  Sometimes it is wrong because of over depreciation of the improvement. And sometimes, the official figures are actually pretty good.

        By what method do we tell the difference between crap assessments and good ones? And by what method do we persuade people of this judgment?

        And then when we come to some agreement on the assessment maps, the first thing people want to know is: how would this affect me in Year 1.  Do I pay more or less?  And for elected officials: do my constituents pay more or less?

        When you have a situation where more than 50% of homeowners would pay more in year one (rare but not so rare, I've previously run data for 24 maryland counties and 150+ maryland cities, in addition to the entire states of NJ and Indiana and many other localities here and there.)  It is pretty hard to convince an elected officials to stick her neck out.

        So where are the maps?  Why aren't Georgists, (by and large ) creating the maps and publishing them online and telling people what the effect in year one would be?

        Where is the map for Greece?  There is data available.  It's easy to say Greece should use LVT as an alternative but where are the actually details.

        Here are some proposed reasons for the absence of this kind of action.

        1.  Most Georgist wouldn't have the vaguest idea of how to do this, even if the available data was given them. 

        2.  It does take some undertaking.  Not so much as one might think having been intimately involved in doing such a thing on a pro bono basis for the entire states of Maryland, New Jersey, and Indiana.   But it still takes some time, but not really that much.

        3.  The "pay mores"  complain! And those that pay the sames or save a just few bucks don't give a damn.  

        It might be useful for Vincent to discuss why he took down the Md, NJ and Indiana Land Value Tax Project sites which had such maps and details. I think a combination of the data getting old and No. 3, was the reasoning.  But I don't know.  On the other hand I don't know how you convince anybody to move toward LVT without the data and the maps and an estimation of year one effects.

        I've attached some for Baltimore City, the Baltimore metro area (Balt. City and Balt. County) and for the entire state of Maryland.)  2004 data. When you take a look at the map for the State of Maryland, see if you can guess where the chair of the Maryland General Assembly House Ways and Means Committee lives and is elected from? I had 11 cosponsors on one or more of 4 LVT bills out of 20 on her W&M committee (a majority), but I still couldn't get a vote to get it out of Committee!

      • roy_langston1
        ... Which is presumably why one starts with incontestable facts, such as the fact that if a property would sell for the same price with or without the house,
        Message 4 of 9 , Jul 7 2:17 PM
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          --- In LandCafe@yahoogroups.com, John David Kromkowski <jdkromkowski@...> wrote:

          > If you begin with the claim that people's homes (the
          > structure where real families are living) are often
          > basically worthless, then you will never convince
          > anybody that your methodology is sound and fair.

          Which is presumably why one starts with incontestable
          facts, such as the fact that if a property would sell
          for the same price with or without the house, the
          house has no value.

          > L + I = Sales Price. If all we know is sales price
          > on improved lots, then we have to disaggregate and
          > if in that process you tell someone that what they
          > are living in which is not a condemned structure is
          > not worth much of anything then you made a mistake.

          No, I have already proved that claim false, above.

          > Because people do not pay to live in empty lots.

          So, by that "logic," empty lots have no value...?

          > By what method do we tell the difference between
          > crap assessments and good ones?

          By reference to actual transaction prices.

          > And by what method do we persuade people of this
          > judgment?

          By identifying the fact that actual transaction
          prices are a better indicator of value than numbers
          concocted out of thin air.

          > When you have a situation where more than 50% of
          > homeowners would pay more in year one (rare but
          > not so rare, I've previously run data for 24
          > maryland counties and 150+ maryland cities, in
          > addition to the entire states of NJ and Indiana
          > and many other localities here and there.) It is
          > pretty hard to convince an elected officials to
          > stick her neck out.

          It depends a great deal on the state of the current
          assessments, but should be extremely rare -- usually
          only in areas of large older houses where land values
          have increased greatly. Everywhere else, the
          universal individual exemption ensures resident owners
          pay less tax right from Year One.

          > So where are the maps? Why aren't Georgists, (by
          > and large ) creating the maps and publishing them
          > online and telling people what the effect in year
          > one would be?

          IMO it would take considerable familiarity with the
          peculiarities of local assessments, markets, zoning,
          etc. to writ a program that could take existing
          assessments and recent transaction data and produce
          an accurate land value map.

          > Where is the map for Greece? There is data
          > available.

          What kind of "data"? GIGO.

          > Here are some proposed reasons for the absence of
          > this kind of action.
          >
          > 1. Most Georgist wouldn't have the vaguest idea of
          > how to do this, even if the available data was given
          > them.

          I could probably do it, assuming any inaccuracies in
          existing assessments were systematic and predictable,
          not just big random errors or cases of corruption.

          > 3. The "pay mores" complain! And those that pay the
          > sames or save a just few bucks don't give a damn.

          That's why we need to show how the universal individual
          exemption to restore the right to liberty saves most
          resident homeowners (and even more, tenants) a lot.

          -- Roy Langston
        • Jason
          Hi All, Perhaps this has been mentioned already, but according to the Council of Georgist Organizations website at http://www.cgocouncil.org/showcgo.php
          Message 5 of 9 , Jul 8 6:25 AM
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            Hi All,

            Perhaps this has been mentioned already, but according to the Council of Georgist Organizations website at http://www.cgocouncil.org/showcgo.php there's a Georgist group in Greece called the Omilos Meleton Cultural Institute (director, Nikolas Kazanas).

            Has this group been able to make any headway in Greece in regards to how geoist ideas can address Greece's current economic woes?

            ----Jason


            --- In LandCafe@yahoogroups.com, "roy_langston1" <roy_langston1@...> wrote:
            >
            > --- In LandCafe@yahoogroups.com, John David Kromkowski jdkromkowski@ wrote:
            >
            > > If you begin with the claim that people's homes (the
            > > structure where real families are living) are often
            > > basically worthless, then you will never convince
            > > anybody that your methodology is sound and fair.
            >
            > Which is presumably why one starts with incontestable
            > facts, such as the fact that if a property would sell
            > for the same price with or without the house, the
            > house has no value.
            >
            > > L + I = Sales Price. If all we know is sales price
            > > on improved lots, then we have to disaggregate and
            > > if in that process you tell someone that what they
            > > are living in which is not a condemned structure is
            > > not worth much of anything then you made a mistake.
            >
            > No, I have already proved that claim false, above.
            >
            > > Because people do not pay to live in empty lots.
            >
            > So, by that "logic," empty lots have no value...?
            >
            > > By what method do we tell the difference between
            > > crap assessments and good ones?
            >
            > By reference to actual transaction prices.
            >
            > > And by what method do we persuade people of this
            > > judgment?
            >
            > By identifying the fact that actual transaction
            > prices are a better indicator of value than numbers
            > concocted out of thin air.
            >
            > > When you have a situation where more than 50% of
            > > homeowners would pay more in year one (rare but
            > > not so rare, I've previously run data for 24
            > > maryland counties and 150+ maryland cities, in
            > > addition to the entire states of NJ and Indiana
            > > and many other localities here and there.) It is
            > > pretty hard to convince an elected officials to
            > > stick her neck out.
            >
            > It depends a great deal on the state of the current
            > assessments, but should be extremely rare -- usually
            > only in areas of large older houses where land values
            > have increased greatly. Everywhere else, the
            > universal individual exemption ensures resident owners
            > pay less tax right from Year One.
            >
            > > So where are the maps? Why aren't Georgists, (by
            > > and large ) creating the maps and publishing them
            > > online and telling people what the effect in year
            > > one would be?
            >
            > IMO it would take considerable familiarity with the
            > peculiarities of local assessments, markets, zoning,
            > etc. to writ a program that could take existing
            > assessments and recent transaction data and produce
            > an accurate land value map.
            >
            > > Where is the map for Greece? There is data
            > > available.
            >
            > What kind of "data"? GIGO.
            >
            > > Here are some proposed reasons for the absence of
            > > this kind of action.
            > >
            > > 1. Most Georgist wouldn't have the vaguest idea of
            > > how to do this, even if the available data was given
            > > them.
            >
            > I could probably do it, assuming any inaccuracies in
            > existing assessments were systematic and predictable,
            > not just big random errors or cases of corruption.
            >
            > > 3. The "pay mores" complain! And those that pay the
            > > sames or save a just few bucks don't give a damn.
            >
            > That's why we need to show how the universal individual
            > exemption to restore the right to liberty saves most
            > resident homeowners (and even more, tenants) a lot.
            >
            > -- Roy Langston
            >

          • John David Kromkowski
            I have no problem with a personal exemption (I d favor it), but the devil again is in the details. (One of the bills, I helped get introduced in Maryland had
            Message 6 of 9 , Jul 8 11:16 AM
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              I have no problem with a personal exemption (I'd favor it), but the devil again is in the details.  (One of the bills, I helped get introduced in Maryland had an exemption for the first 40K of land for owner occupied principle place of residence.  BTW, this bill had the most cosponsors.  But I also could provide the legislators actual details of year one effects for any specific property they wanted. Without actual data, elected officials are very reluctant to consider anything.)   It is not enough to say that "you probably could work out the numbers", it is a matter that the number have to actually be done.  You know, after all is said and done; there really should be more done than said.

              But how would propose to calculate the amount of the exemption?
               
              We are both in agreement that pulling numbers out of thin air is not a good method, not only because it can't be accurate  but it will not be perceived as fair. For a number of pragmatic economist with whom I've spoken over the year, the perception that assessments in some places can be this kind of thing is the biggest strike against land value taxation.
               
              But generically saying "based on the transaction data", is not actually saying much because that is what assessors (most of whom try to be professional) already use.  But the transactions in urban areas very rarely involve empty lots or any empty lot which is immediately torn down.  So there needs to be a process of separating out the two components.  If you create a model that good and in current use housing stock is worth nothing or almost nothing, then the model is wrong.  The by-product of creating a model to determine land value from real estate transaction data is that the model must also determine improvement value.  Because it is a model (of which that can be many), testing the outcomes against reality is required.  It is not enough to say well the model says that the house you're living in is worth next to nothing, so it must be true.   Because if someone is living in a house that is in reasonable good shape the value is NOT zero and it certainly not just 20% of the total.  So for Harry and you to say that land valuer does care about the improvements does not make sense?  Unless you are in some rural area, you have to account for the fact that land and improvements are sold together in the majority of situations.  It would be like trying to study individual quarks. You can't do that because they only exist, at least now, only in Hadrons (usually three quarks together in the case of Baryons).
               
              You can keep saying an empty lot that would sell for the same price as the same lot with a structure is a situation where the structure is worth nothing.  But that is circumstance that is almost as rare as the mythical land rich cash income poor widow. (I very much doubt that they really exist, since no one has ever been able to actually name names.)

              So back to Greece.  I posted a link that shows that Greece has an ad valorem real estate (land + improvements) tax and that assessments are done every two years.  If people were serious that Greece should use a LVT to raise sufficient revenues to pay debt without hampering economy, then they would get the data and run the numbers.  Has any Georgist done this? No.  It seems that most were likely unclear whether Greece even taxed land value in any capacity at all. 
            • roy_langston1
              ... The exemption must be per person, not per property, and must also apply to tenants. ... OK, so it was closer to what is needed for popular appeal:
              Message 7 of 9 , Jul 8 1:36 PM
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                --- In LandCafe@yahoogroups.com, John David Kromkowski <jdkromkowski@...> wrote:

                > I have no problem with a personal exemption (I'd
                > favor it), but the devil again is in the details.
                > (One of the bills, I helped get introduced in
                > Maryland had an exemption for the first 40K of land
                > for owner occupied principle place of residence.

                The exemption must be per person, not per property,
                and must also apply to tenants.

                > BTW, this bill had the most cosponsors.

                OK, so it was closer to what is needed for popular
                appeal: restoration of the equal individual right to
                liberty.

                > But how would propose to calculate the amount of
                > the exemption?

                I am leaning toward using the mode: the amount of
                land value the most people use. This can be
                calculated by dividing the land value of each
                residential parcel by the number of people living
                there, and seeing which amount (or range of amounts)
                is most frequent. However, this exemption amount
                only becomes possible when effectively all rent is
                being recovered. During a phase-in period, I would
                suggest starting with 50% of expected initial per
                capita revenue, increasing by 20% of each expected
                revenue increment for the duration of the phase-in.

                > For a number of pragmatic economist with whom
                > I've spoken over the year, the perception that
                > assessments in some places can be this kind of
                > thing is the biggest strike against land value
                > taxation.

                Yes, many people think assessments are more or less
                arbitrary.

                > But generically saying "based on the transaction
                > data", is not actually saying much because that is
                > what assessors (most of whom try to be professional)
                > already use.

                "Misuse" would be more accurate.

                > But the transactions in urban areas very rarely
                > involve empty lots or any empty lot which is
                > immediately torn down.

                Demolition does not have to be all that immediate to
                give an accurate basis of land value. Unless there has
                been substantial damage to the improvements, a zoning
                change, etc., a few years would not make any difference,
                as the improvements would not have lost very much value
                in the interim. And IMO privately owned land should not
                be rezoned in any case. If designated land use is to
                change, the city should buy the land at market, change
                the zoning, then sell it back into the market, retaining
                any capital gain. This would also provide significant
                land value information.

                > If you create a model that good and in current use
                > housing stock is worth nothing or almost nothing,
                > then the model is wrong.

                That premise is objectively false, as already proved.

                > The by-product of creating a model to determine land
                > value from real estate transaction data is that the
                > model must also determine improvement value. Because
                > it is a model (of which that can be many), testing the
                > outcomes against reality is required.

                Right: against reality, not against false assumptions.

                > It is not enough to say well the model says that the
                > house you're living in is worth next to nothing, so
                > it must be true.

                It's truer than an arbitrary and unsupported assumption
                that improvements in use can't be worth less than some
                arbitrary amount.

                > Because if someone is living in a house that is in
                > reasonable good shape the value is NOT zero

                That assumption is objectively false. If the property
                would sell for the same amount with or without the
                house, the value of the house is zero. Period.

                > and it certainly not just 20% of the total.

                Depending on the market, it can be. It is probably
                close to that in the City of Vancouver.

                > So for Harry and you to say that land valuer does
                > care about the improvements does not make sense?

                It makes perfect sense. It is your objectively false
                assumption that improvements have to have value just
                because they are in use that does not make sense.

                > Unless you are in some rural area, you have to
                > account for the fact that land and improvements are
                > sold together in the majority of situations.

                So? Sausages are almost always sold with a certain
                amount of insect parts, rodent hairs, etc. in them.
                That doesn't mean the insect parts and rodent hairs
                are worth anything.

                > You can keep saying an empty lot that would sell
                > for the same price as the same lot with a structure
                > is a situation where the structure is worth nothing.

                Correct. I can keep saying it -- in fact, I will --
                and it will keep being objectively true.

                > But that is circumstance that is almost as rare as
                > the mythical land rich cash income poor widow. (I
                > very much doubt that they really exist, since no
                > one has ever been able to actually name names.)

                They certainly exist -- it is statistically pretty
                much inevitable -- as do improvements without value.

                > So back to Greece. I posted a link that shows that
                > Greece has an ad valorem real estate (land +
                > improvements) tax and that assessments are done every
                > two years. If people were serious that Greece should
                > use a LVT to raise sufficient revenues to pay debt
                > without hampering economy, then they would get the
                > data and run the numbers. Has any Georgist done this?
                > No. It seems that most were likely unclear whether
                > Greece even taxed land value in any capacity at all.

                It appears that Greece's property tax is a kind of
                ideal: it is so small and so marvelously complex that
                its revenue barely covers its cost of administration.

                -- Roy Langston
              • John David Kromkowski
                ... Yes, ideally per capita. The tenants don t get a property tax bill so do you give them a check equal to their per capita share? Then you are not talking
                Message 8 of 9 , Jul 8 2:45 PM
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                  > I have no problem with a personal exemption (I'd
                  > favor it), but the devil again is in the details.
                  > (One of the bills, I helped get introduced in
                  > Maryland had an exemption for the first 40K of land
                  > for owner occupied principle place of residence.

                  The exemption must be per person, not per property,
                  and must also apply to tenants.


                  Yes, ideally per capita. 

                  The tenants don't get a property tax bill so do you give them a check equal to
                  their per capita share?  Then you are not talking about a personal exemption but
                  a CD.

                  Do you have a check off on the LVT tax bill, where you identify the amount of people living there and then deduct from amount owed?
                  How do you verify? 


                  > But how would propose to calculate the amount of

                  > the exemption?

                  I am leaning toward using the mode: the amount of
                  land value the most people use. This can be
                  calculated by dividing the land value of each
                  residential parcel by the number of people living
                  there, and seeing which amount (or range of amounts)
                  is most frequent. However, this exemption amount
                  only becomes possible when effectively all rent is
                  being recovered. During a phase-in period, I would
                  suggest starting with 50% of expected initial per
                  capita revenue, increasing by 20% of each expected
                  revenue increment for the duration of the phase-in.

                  > For a number of pragmatic economist with whom
                  > I've spoken over the year, the perception that
                  > assessments in some places can be this kind of
                  > thing is the biggest strike against land value
                  > taxation.

                  Yes, many people think assessments are more or less
                  arbitrary.


                  Sometimes they think this even when they aren't arbitrtary.
                   

                  > But generically saying "based on the transaction
                  > data", is not actually saying much because that is
                  > what assessors (most of whom try to be professional)
                  > already use.

                  "Misuse" would be more accurate.

                  How can you make such a generic critique without reference to actual data.



                  > But the transactions in urban areas very rarely
                  > involve empty lots or any empty lot which is
                  > immediately torn down.

                  Demolition does not have to be all that immediate to
                  give an accurate basis of land value. Unless there has
                  been substantial damage to the improvements, a zoning
                  change, etc., a few years would not make any difference,
                  as the improvements would not have lost very much value
                  in the interim. And IMO privately owned land should not
                  be rezoned in any case. If designated land use is to
                  change, the city should buy the land at market, change
                  the zoning, then sell it back into the market, retaining
                  any capital gain. This would also provide significant
                  land value information.

                  There just is not enough data for pure land value (or effectively mostly land value because of imminent or recent demolition)  transactions
                  to translate Sales data (land+imp.) into land value without make some reference to a model which includes improvement value.

                  Cities do not have money to buy back land, change zoning and sell back to the market.  It is a completely convoluted mechanism that you are proposing.

                  > If you create a model that good and in current use
                  > housing stock is worth nothing or almost nothing,
                  > then the model is wrong.

                  That premise is objectively false, as already proved.


                  Proved by whom?

                  > The by-product of creating a model to determine land
                  > value from real estate transaction data is that the
                  > model must also determine improvement value. Because
                  > it is a model (of which that can be many), testing the
                  > outcomes against reality is required.

                  Right: against reality, not against false assumptions.

                   

                  > It is not enough to say well the model says that the
                  > house you're living in is worth next to nothing, so
                  > it must be true.

                  It's truer than an arbitrary and unsupported assumption
                  that improvements in use can't be worth less than some
                  arbitrary amount.


                  Perhaps it would be helpful for me to better understand where you are coming from if I understood what you do for a living.

                  Are you an economist?
                  Do you own your own home?

                  Would you agree that when a person leases an apartment, they are paying for two things:  one is the right to live in a particular location and two
                  is the actual structure that will have a place for them to sleep without rain, and which is the proper temperature and to make dinner and to eat and to keep their stuff?
                   


                  > Because if someone is living in a house that is in
                  > reasonable good shape the value is NOT zero

                  That assumption is objectively false. If the property
                  would sell for the same amount with or without the
                  house, the value of the house is zero. Period.

                  If they are living there then it would not sell for the same amount with or without the house.
                  You have created a condition that really does not exist in reality or exists so infrequently that it has no meaning.

                  If people are living in a structure that according to you has no value, why aren't they just living in the street or sidewalk in front of the house for free?

                  > Unless you are in some rural area, you have to
                  > account for the fact that land and improvements are
                  > sold together in the majority of situations.

                  So? Sausages are almost always sold with a certain
                  amount of insect parts, rodent hairs, etc. in them.
                  That doesn't mean the insect parts and rodent hairs
                  are worth anything.


                  My great-grandfather and great uncle and even my father who still has his meat-cutters card (even though he's been an academic for nearly 50 years), all made and sold
                  sausage.    The best kielbasa is South Bend, Ind. and probably the best in the world.

                  And it did not have insect parts nor rodent hairs in it.  I've made sausage too.  No insects or rodent hairs.
                  I also worked on Capitol Hill a long time ago, so I also know how sausage is metaphorical made too.

                  I'm suspecting that you've never made sausage in your life.






                   


                  > You can keep saying an empty lot that would sell
                  > for the same price as the same lot with a structure
                  > is a situation where the structure is worth nothing.

                  Correct. I can keep saying it -- in fact, I will --
                  and it will keep being objectively true.

                  > But that is circumstance that is almost as rare as
                  > the mythical land rich cash income poor widow. (I
                  > very much doubt that they really exist, since no
                  > one has ever been able to actually name names.)

                  They certainly exist -- it is statistically pretty
                  much inevitable -- as do improvements without value.

                  > So back to Greece. I posted a link that shows that
                  > Greece has an ad valorem real estate (land +
                  > improvements) tax and that assessments are done every
                  > two years. If people were serious that Greece should
                  > use a LVT to raise sufficient revenues to pay debt
                  > without hampering economy, then they would get the
                  > data and run the numbers. Has any Georgist done this?
                  > No. It seems that most were likely unclear whether
                  > Greece even taxed land value in any capacity at all.

                  It appears that Greece's property tax is a kind of
                  ideal: it is so small and so marvelously complex that
                  its revenue barely covers its cost of administration.

                  -- Roy Langston





                  --
                  Very truly yours

                  John D. Kromkowski
                  6803 York Road -- Suite 207
                  Baltimore, MD 21212

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                  This communication, along with any documents, files or attachments, is intended only for the use of the addressee and may contain legally privileged and confidential information. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of any information contained in or attached to this communication is strictly prohibited.

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                • roy_langston1
                  ... No, they just fill in a form, and their exemption is applied to their place of residence in lieu of part of their rent. ... No, it s an exemption. No cash
                  Message 9 of 9 , Jul 9 12:13 AM
                  • 0 Attachment
                    --- In LandCafe@yahoogroups.com, John David Kromkowski <jdkromkowski@...> wrote:

                    > The tenants don't get a property tax bill so do you
                    > give them a check equal to their per capita share?

                    No, they just fill in a form, and their exemption is
                    applied to their place of residence in lieu of part
                    of their rent.

                    > Then you are not talking about a personal exemption
                    > but a CD.

                    No, it's an exemption. No cash payment is involved.
                    Their landlord just pays that much less property tax,
                    while they pay that much less rent.

                    > Do you have a check off on the LVT tax bill, where
                    > you identify the amount of people living there and
                    > then deduct from amount owed?

                    Something like that. The tenant would fill out and
                    sign a form indicating their address, and their
                    exemption would apply to that address.

                    > How do you verify?

                    Tenant signature cross-checked against residence of
                    record.

                    > > Yes, many people think assessments are more or less
                    > > arbitrary.
                    >
                    > Sometimes they think this even when they aren't
                    > arbitrtary.

                    Of course. But the perception is often justified.

                    > > > But generically saying "based on the transaction
                    > > > data", is not actually saying much because that is
                    > > > what assessors (most of whom try to be professional)
                    > > > already use.
                    > >
                    > > "Misuse" would be more accurate.
                    > >
                    > How can you make such a generic critique without
                    > reference to actual data.

                    I've looked at enough assessment rules to know they are
                    often garbage. Appraisers at least have a market
                    discipline, but tax assessments by government assessors
                    are often required by law to be wildly wrong.

                    > There just is not enough data for pure land value
                    > (or effectively mostly land value because of
                    > imminent or recent demolition) transactions
                    > to translate Sales data (land+imp.) into land
                    > value without make some reference to a model
                    > which includes improvement value.

                    Improvement value is only included in the sense
                    that it is part of the assessment data. The
                    purpose of the model is to prune it away, leaving
                    just land value.

                    > Cities do not have money to buy back land, change
                    > zoning and sell back to the market.

                    Yes, they do. They have revenue from somewhere, and
                    are paying expenses with something. You claim they
                    can't afford to recover the land value increments
                    they create by rezoning? Wrong. What they can't
                    afford is to keep giving them away.

                    > It is a completely convoluted mechanism that you
                    > are proposing.

                    It is extremely simple: buy low, sell high.

                    > > If you create a model that good and in current use
                    > > > housing stock is worth nothing or almost nothing,
                    > > > then the model is wrong.
                    > >
                    > > That premise is objectively false, as already proved.
                    >
                    > Proved by whom?

                    By me.

                    > > > It is not enough to say well the model says that the
                    > > > house you're living in is worth next to nothing, so
                    > > > it must be true.
                    > >
                    > > It's truer than an arbitrary and unsupported assumption
                    > > that improvements in use can't be worth less than some
                    > > arbitrary amount.
                    >
                    > Perhaps it would be helpful for me to better understand
                    > where you are coming from if I understood what you do
                    > for a living.

                    I don't see how.

                    > Are you an economist?

                    It's a dirty job, but someone has to do it.

                    > Do you own your own home?

                    I don't speculate in residential real estate for a
                    living, if that's what you mean.

                    > Would you agree that when a person leases an
                    > apartment, they are paying for two things: one
                    > is the right to live in a particular location
                    > and two is the actual structure that will have
                    > a place for them to sleep without rain, and
                    > which is the proper temperature and to make
                    > dinner and to eat and to keep their stuff?

                    No, they are also paying for maintenance, insurance,
                    security, administration, etc. These can account
                    for a substantial fraction of their rent bill if
                    they are in a low-rent building.

                    > > > Because if someone is living in a house that is in
                    > > > reasonable good shape the value is NOT zero
                    > >
                    > > That assumption is objectively false. If the property
                    > > would sell for the same amount with or without the
                    > > house, the value of the house is zero. Period.
                    > >
                    > If they are living there then it would not sell for
                    > the same amount with or without the house.

                    It might well do so. People often live in buildings
                    right up to the time they are demolished -- in fact,
                    they sometimes have to be removed by force so the
                    demolition crew can do their job. Such buildings
                    self-evidently and indisputably have no value.

                    You are just objectively wrong. That will continue
                    to happen as long as you presume to dispute with me.

                    > You have created a condition that really does not
                    > exist in reality or exists so infrequently that it
                    > has no meaning.

                    It exists fairly often in areas where land value has
                    risen a lot, because people who can afford expensive
                    land don't want to live in cheap old houses. Such
                    houses are so common there is even a special word for
                    them -- "teardowns" -- and they have no value:

                    http://www.realtylink.org/prop_search/Summary.cfm?ComID=&agentid=&areatitle=Vancouver%20West&ARPK=37,44,36,26,10105,41,21,32,30,28,23,33,22,39,24,43,29,40,34,853,31,35,42,27&rowp=1&BCD=GV&imdp=&RSPP=5&AIDL=27,35,31,28,34,29,30,32,43,24,22,23&SRTB=P_Price&ERTA=false&MNAGE=0&MXAGE=200&MNBT=1&MNBD=1&PTYTID=5&MNPRC=200000&MXPRC=1990000&SCTP=RA&Page=Next&

                    Start reading the listings, and note how many of
                    them specify land value only, or invite offers from
                    builders or developers. All the houses listed are
                    in livable condition, some are even quite nice, but
                    the real estate listings themselves state explicitly
                    that they have no value. I have explained all this
                    before.

                    > If people are living in a structure that according
                    > to you has no value, why aren't they just living in
                    > the street or sidewalk in front of the house for
                    > free?

                    Probably because they are not stupid.

                    > > Unless you are in some rural area, you have to
                    > > > account for the fact that land and improvements are
                    > > > sold together in the majority of situations.
                    > >
                    > > So? Sausages are almost always sold with a certain
                    > > amount of insect parts, rodent hairs, etc. in them.
                    > > That doesn't mean the insect parts and rodent hairs
                    > > are worth anything.
                    >
                    > My great-grandfather and great uncle and even my
                    > father who still has his meat-cutters card (even
                    > though he's been an academic for nearly 50 years),
                    > all made and sold sausage. The best kielbasa is
                    > South Bend, Ind. and probably the best in the world.

                    I have no doubt of it.

                    > And it did not have insect parts nor rodent hairs
                    > in it.

                    Yes, unless they made it in a clean room suitable
                    for a chip foundry, using ingredients cleaned by
                    microscopic examination, it almost certainly did.
                    Just not enough for them to notice.

                    > I've made sausage too. No insects or rodent hairs.

                    So you seem to believe. Microscopic and/or DNA
                    analysis would almost certainly find some.

                    > I also worked on Capitol Hill a long time ago,

                    I'm sure that's a shocker to some....

                    > I'm suspecting that you've never made sausage in
                    > your life.

                    How special for you.

                    -- Roy Langston
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