John Richmond writes from Harvard University:
"I'd appreciate some quick tips on government charging of land
developers
for the impact their developments will have on increasing congestion in
return for the right to proceed with development.
It would be helpful to have some examples of where this has already been
done, and on what basis. What powers have been invoked to assess such
charges, and have specific impacts on congestion been estimated and
passed
on, or have some flat rates been used? Has any such money raised been
used
for improvements to transport or tended to go to general funds?"
Dave Wetzel replies:
This is a form of development land tax.
It raises a few questions:
1. Why only tax a new development to pay for transport policies to
reduce congestion - when all developed sites in the locality contribute
to the congestion and will benefit from policies to alleviate it?
2. If congestion is alleviated, all land sites, including undeveloped
ones, will increase in rental value. Why not tax all sites and not just
pick on development sites?
3. Previous Development Land Taxes in the UK (1947, 1967 & 1976/7) have
been largely avoided by developers and landowners sitting on their
undeveloped land until the tax was abolished - leading to a shortage of
land and higher prices. Thus making homes more unaffordable and
opportunities for work scarcer. What would prevent this being repeated?
4. Why tax land once in the lifetime of a building when an annual land
value tax could collect an annual contribution towards local transport
solutions?
5. Landowners do not make land - and never have. Land is a free gift of
nature provided to mankind with no cost of production. Adam Smith, David
Ricardo and even Karl Marx recognised the benefit of using land rent to
pay for public services.
Please contact me if you want further information.
Dave Wetzel
Vice-Chair TfL.
Tel: 020 7126 4200
***********************************************************************************
The contents of the e-mail and any transmitted files are confidential and intended solely for the use of the individual or entity to whom they are addressed. Transport for London hereby exclude any warranty and any liability as to the quality or accuracy of the contents of this email and any attached transmitted files. If you are not the intended recipient be advised that you have received this email in error and that any use, dissemination, forwarding, printing or copying of this email is strictly prohibited.
If you have received this email in error please notify [log in to unmask]
This footnote also confirms that this email message has been swept for the presence of computer viruses.
***********************************************************************************
|