Evening star., 1936-10-24
Problem of Vacant Land
In Montgomery County
To the Editor Of The Star:

In last Sundays Star there was an
announcement of meeting in November
Of the citizens and property owners Of
Bethesda. This meeting has been called
for the purpose of considering the ad-
visibility of instituting a tax on all
vacant land in the town. Those who
know Bethesda must be struck with the
scattered condition of the residential
section. However, this condition is by
no means singular to Bethesda-it pre-
walls in all Of the suburban areas Of all
cities. to greater or lesser extent.
Why this condition of SO much vacant
land? Herein is illustrated one of the
fundamental errors of our social system.
Our system of taxing improvements on
property, while allowing vacant lots to
60 "Scot Free" results in the economic
error of land monopoly-holding land out
OF use for speculative purposes, or, in
other words, waiting until those who use
their land, improving it with building
operations, add value to the vacant lots.
This value which accrueS to all land
In proximity to populated centers is called
land value. All land values are un-
earned increment which the people as a
community have placed there. This COM
munal value should be collected year by
year and used for communal purposes.
This would pave the way for reduction
of the heavy burden of taxes on i'm
provements under which so many home
owners are groaning.
In Sydney. Australia, land value tax
-3 per cent of the rental value of all
land-iS levied for financing roads
boards. Even this small tax is having
the effect of throwing large areas of idle
land on the market at a reduced price.
This Is stimulating employment and
boosting up all business in that city.
1t might be very good idea for the
authorities sponsoring the move in
Bethesda to communicate with the
Mayor of Pittsburgh, Pa, and inquire as
to the operation of land value tax
which has been operating in that city
with considerable success for several
years.
The scientific form of taxation, one
which will positively work and at the
same time place no heavy burden on
any legitimate user of land, would be
to have all the land around Bethesda
assessed on its unimproved value. The
next step would be to tax the rental value
of all land-improvements exempted
commencing with low percentage and
gradually increasing it, and decreasing
the taxes proportionately on improve
ments. In few years time all the
rental value which the people by their
presence as a community have created
would be going where it belongs-into
the governmental treasury-and all
legitimate owners of land, those who
make use of land, would be breathing a
sigh of relief from the present heavy
taxes.
The effect of this straight-out land
value tax would be evident very soon.
Thousands of splendid building lots in
Bethesda would be quickly thrown on
the market at reduced price, and thou
sands of landhungry people would then
be able to buy this land and begin
building operations. Instead of the
scattered community, which causes much
inconvenience to those who own homes
in this very attractive suburb, Bethesda
would become prosperous, contented
community and set an example to other
suburbs which are now laboring under
similar vacant lot" difficulties.
ALICE M. CAPORN.