The first step is determine whether and to what degree economic rents are involved in changes in land valuation.
Secondly, if so, how to deal with this is a manner that is socially, politically, financially, and economically feasible.
Thirdly, how to optimize this, given the tradeoffs.
The funding of Canadian municipal governments is not normally thought of as interesting topic; even Canadian fixed income investors are not particularly excited about it. However, there are two side issues that are of general interest. The first question is: what happens to Canadian municipalities if the housing bubble pops? (As a spoiler, not very much.) The second question is the feasibility of a Land Value Tax (LVT) which is a concept that gets some people on the internet very excited. I will then outline why a LVT is inferior to the Canadian property tax system (which is not that different than the American system for that discussion)...Bond Economics
Principles Of Canadian Municipal Finance (And Why A Land Value Tax Is Inferior)
Brian Romanchuk
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