Pittsburgh's experience with this split-tax system is inconclusive, but many small towns saw increased construction in their centers after implementing the tax. Although a land value tax is likely to increase densities, it must be used hand in hand with zoning laws to curb sprawling development. One hundred years ago cities were organized around a central core with most of the public investment concentrated in a relatively small area. Land values were determined by locational benefits with land near the core being more valuable. But the value of the core has changed as the economy has changed.
Freeways now roam through rural areas and skim the edges of cities and towns.
Without the restraint of zoning policies, there are many enhanced commercial opportunities and higher corresponding land values along freeways. Zoning can be used to determine where high-density commercial areas should be located.