There was a strong moral basis for the land value tax—land value increased over time because of growth in population and improvements made by the community, either as utility infrastructure or transportation investments by government and the private sector.

What makes the value of land?

Land value may be determined by real estate appraisals conducted by third parties. ... Appraisal of the land can include a comparison of its condition to similar real estate. This is not the same as comparative market analysis, wherein the prices of recently sold similar properties are compared.

Is land value important?

Knowing the land-to-asset ratio of a property is important because rising land value is the primary driver of price growth, whereas on most occasions the dwelling is depreciating in value. For this reason, it pays to have an optimal percentage of the property made up of the land value.