QUERY Land Tax Dynamics (SD6070)

[M. Lehmann mlehmann1 austin.rr.com]

Posted by  "M. Lehmann" <mlehmann1 at austin.rr.com>
> In thread: REPLY Fraction of Projects Qualitative (SD6068)
> Posted by  "Jim Hines" <Jim at ventanasystems.com>
> Maybe M. Schwant's presenter was referring to the number of **issues**
> handled informally, vs. formally. If so, I can report that I handle lots

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Is there any description of those informal techniques?  I have had no training 
in system dynamics, but know I need some way of getting at "issues" and 
incorporating them in a framework that tells me something about behavior.

Specifically, I am investigating the effect of increases in the land tax, 
which lowers the price/value of land (think: it approaches rental value 
where sale value  equals zero) in relation to the effect of the tax law, 
where the higher the land value the higher the tax, i.e., an opposite 
proportionality, somewhat delayed.

tax $    land $             land $     tax $
high ---> low              low  ----> low
            and
low ----> high              high ----> high , which, superimposed, is a
                            figure eight flow

I believe a high land tax, with other taxes accordingly reduced, is 
beneficial for taxpayers, especially if it is due in monthly payments like 
rent, and I need to work up some realistic conjectures.  The public is 
everywhere bent on getting  its property tax (land plus improvements) 
lowered, which is fine with anyone in the land sales and land speculation 
business, but a decline over time for everyone else, partly because with a 
low property tax cities aren't capturing the increase in land value due to 
the city's location with its increasing amenities.

Mary Lehmann
Keep The Land Foundation 
Posted by  "M. Lehmann" <mlehmann1 at austin.rr.com>
posting date  Sat, 2 Dec 2006 09:54:22 -0600