New York – On Tax Day, Assemblymember Tony Simone, Assemblymember Alex Bores, and State Senator Rachel May call for the transition from the current property tax structure to a Land Value Tax to combat the housing crisis.

A Land Value Tax (LVT) is a tax levied on the value of land itself, rather than on buildings or improvements made to the property. Unlike traditional property taxes, which tax both land and structures, a LVT only targets the unimproved land, encouraging productive land use and discouraging speculation.

The lack of new development continues to drive housing affordability in New York. Specifically, property owners holding onto vacant or underutilized land and waiting for its value to increase rather than developing it into what New Yorkers need, affordable housing. The current tax system rewards this behavior, since taxes will be much lower in the period before they develop their property. A LVT flips the tax system, making it costly to sit on unused land. It targets corporate speculation while our cities and states face a desperate need for housing.

Land Value Tax Pilot Legislation: A03339/S1131A

Directs the department of taxation and finance to establish a pilot program for implementation of local land value taxation based on classes of land; directs the department of taxation and finance to establish an application procedure for the pilot program.

“Implementing a land value tax in New York could be a powerful tool to unlock underutilized land, incentivize development, and create a more equitable and efficient housing market,” said Assemblymember Tony Simone. “By shifting the tax burden away from housing production and onto land speculation, LVT can play a key role in solving the city’s ongoing housing crisis.”

"I introduced A3339, which would allow cities to enact badly needed property tax reform, in order to spur housing growth and lower costs for New York families. In November, New York's voters spoke loud and clear that cost of living remains a central issue. Other states have freed their municipalities to experiment with split rate taxes in order to spur economic growth and revitalize cities. It is past time we do the same here." Assemblymember Alex Bores

“Shifting tax burdens from buildings to land has great potential for our cities. Throughout the very different economies in New York State, split-rate taxes can spur economic and housing development and ensure our communities are vibrant and thriving. I am proud to sponsor this bill and look forward to working with my Assembly colleagues to get this bill to the Governor’s desk.” State Senator Rachel May

"Property tax rules in NY currently reward speculation and vacancy while discouraging development," said Iziah Thompson, Senior Policy Analyst at the Community Service Society of New York (CSS). "This is unacceptable, at a time when almost 40 percent of NY residents are housing insecure and many counties in the state have seen more than 100 percent increases in homelessness over the last decade. We must act swiftly and boldly to find affordability solutions, and A3339 is a serious attempt to test a viable one."

"Shifting taxes from buildings to land is a proven way to spur development, reduce speculation, and encourage the efficient use of urban space," said Greg Miller, Executive Director of the Center for Land Economics. "LVT aligns incentives to unlock underutilized land and address housing shortages in New York cities."

If you are a local representative interested in participating in the land value tax pilot program, please indicate your interest using this form. Please contact Assemblymember Bores’ district office at 212-605-0937 if you have any questions.